If Capital Per Hour of Labor Decreases, Real GDP Per

question 79

Multiple Choice

If capital per hour of labor decreases, real GDP per hour of labor

• A) decreases because the level of technology decreases.
• B) increases because the level of technology increases.
• C) increases for a given level of technology.
• D) decreases for a given level of technology.

---

Definitions:

Total Asset Turnover

A financial metric that measures a company's efficiency in using its assets to generate sales or revenue.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; often referred to as the bottom line.

Average Total Assets

A financial metric calculated by averaging a company's total assets over a certain period, used to measure a company's asset utilization efficiency.

Held-to-maturity Securities

Debt securities that a company intends and is able to hold until they mature.