Which of the Following Explains Why Production Rises in Most

question 1

Multiple Choice

Which of the following explains why production rises in most years?

• A)increases in the labor force
• B)increases in the capital stock
• C)advances in technological knowledge
• D)All of the above are correct.

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Definitions:

Retention Ratio

The proportion of net income that is retained in the business rather than distributed to shareholders as dividends.

Dividend Payout Ratio

A financial indicator showing the proportion of a company's profits distributed to its shareholders as dividends.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues. It's often referred to as the bottom line.

Capital Intensity Ratio

A metric that measures the amount of assets needed by a company to generate one dollar of revenue.