As Capital Per Worker Rises, Output Per Worker Rises

question 91

True/False

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, representing the operational, investing, and financing activities over a period.

Long-term Debt

Financial obligations or loans that are due for repayment beyond a period of one year.

Dividends Payable

Liabilities representing a company's obligation to pay shareholders a declared dividend.

Operating Activities Section

A part of a company's cash flow statement that shows the cash flow from its core business operations.