Figure 72 Alt Text for Figure 7

question 163

Multiple Choice

Figure 7.2 Alt text for Figure 7.2: In figure 7.2, a graph comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.2: The x-axis is labelled, capital per hour worked.The y-axis is labelled, real GDP per hour worked, Y/L.A concave curve originates from 0 at the vertex and passes through 2 points ($35,000, 1,850) and (40,000, $2000) , toward the end of the x-axis.These 2 points are connected to their respective coordinates on the x-axis and y-axis with dotted lines.
-Refer to Figure 7.2.Based on the per-worker production function above, if the Canadian economy raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked increase?

• A)$150
• B)$1,850
• C)$2,000
• D)$5,000
• E)$35,000

---

Definitions:

Allowance

A reduction from the gross amount of an asset to recognize a reduction in its value.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of receivables that a company does not expect to collect.

Receivable

Money owed to a company by its customers or other parties for goods or services that have been delivered or used but not yet paid for.

Year of Sale

The specific calendar year in which a sale transaction of goods, services, or assets is completed.