Figure 12-1

question 137

Multiple Choice

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L) . On the vertical axis, Y/L represents output (Y) per worker (L) .
-Refer to Figure 12-1. Choose a point anywhere on the curve and call it point A. If the economy is at point A in 2011, then it will definitely remain at point A in 2012 if, between 2011 and 2012,

• A)the quantity of physical capital remains constant; the number of workers doubles; and human capital, natural resources, and technology all double as well.
• B)the quantity of physical capital doubles; human capital, natural resources, and technology all double as well; and the number of workers remains constant.
• C)the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology all double as well.
• D)the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology remain constant.

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, combining sales, production, and financial aspects to overview performance.

Sales Forecast

An estimate of the amount of sales a company expects to achieve over a specific period, often used for strategic planning and resource allocation.

Sales Budget

A financial plan that estimates future sales, often broken down into units and revenue, for a specific period.

Cash Collections

The process of gathering all cash inflows from a company's business activities, including payments from customers and other receivables.