Which of the Following Statements Is True

question 204

Multiple Choice

Which of the following statements is true?

• A) Physical capital accumulation will be high in the current year if the physical capital stock of the previous year was high.
• B) Physical capital accumulation will be high if the physical capital stock of the previous year was low.
• C) The rate of depreciation will be low in the current year if the investment on physical capital the previous year was high.
• D) The rate of depreciation will be high in the current year if the investment on physical capital the previous year was low.

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Definitions:

Annual Pension Contributions

The total amount of money contributed to a pension fund by the employer, employees, or both within a year, intended to support employees' retirement benefits.

Cumulative Earnings

The total amount of net income a company has earned over its lifetime, after dividends are paid out.

Hourly Wage Rate

The financial compensation given per hour of labor.

Time and a Half

A pay rate that is 1.5 times the employee's regular hourly rate, usually paid for overtime work beyond the standard workweek hours.