Some Firms Use Large Amounts of Capital and Small Amounts

question 45

Multiple Choice

Some firms use large amounts of capital and small amounts of labour, while others use small amounts of capital and large amounts of labour to

• A)use surpluses of labour and capital and eliminate unemployment of these resources.
• B)use the best available technology.
• C)use the resources that are most readily available.
• D)maximize profit.
• E)maximize production.

---

Definitions:

Earned

Income or revenue that has been generated from business activities or services provided.

Cash

Money in the form of coins or banknotes, especially that used to operate a business.

Cash Basis

An accounting method whereby revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.

Accounting

The process of recording, classifying, summarizing, and interpreting financial transactions to provide information that is useful in making business decisions.