Use the Following to Answer Questions

question 174

Multiple Choice

Use the following to answer questions :
Scenario: Technological Progress and Productivity Growth in Techland
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.
-(Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What was the growth rate of real GDP per capita in Techland?

• A)2.0%
• B)4.5%
• C)7%
• D)17.5%

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Definitions:

Gross Investment

The total amount invested in a particular asset or project before deducting any depreciation or amortization.

Leased Asset

An asset that is used by a lessee under the terms of a lease agreement with the lessor, who retains ownership.

Residual Value

The estimated amount that an asset is expected to realize at the end of its useful life, minus any anticipated disposal cost.

Sales-Type Lease

A lease arrangement where the lessor recognizes sales revenue at the inception of the lease, often used in lease agreements for property, plant, and equipment.