Examination of Recent Data for Many Countries Shows That Countries

question 86

Multiple Choice

Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:

• A) high saving rates mean permanently higher growth rates of output.
• B) high saving rates lead to high levels of capital per worker.
• C) countries with high levels of output per worker can afford to save a lot.
• D) countries with large amounts of natural resources have both high output levels and high saving rates.

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Definitions:

Undervalued Inventory

Inventory that is reported at a value lower than its actual market value, potentially affecting financial statements and tax liabilities.

Cost Method

An accounting method used to value an investment, based on the cost to acquire it, without considering its fair market value changes.

Voting Shares

Shares that grant the holder the right to vote on corporate matters, typically related to company governance.

Bonds Payable

Long-term liabilities on a company's balance sheet, representing the amount owed to bondholders by the issuer.