If Productivity of an Economy Increases Then

question 27

Multiple Choice

If productivity of an economy increases then:

• A)the amount of goods and services produced by a worker per hour increases.
• B)the population of the labor force increases.
• C)the real GDP per capita decreases.
• D)the population of labor force decreases.

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Definitions:

Cash Disbursement

The payment of money from a fund or account, typically involving the transfer of cash to individuals or companies for services rendered or goods purchased.

Operating Cycle

The period from purchasing inventory to collecting cash from the sale of that inventory.

Accounts Receivable Financing

A type of financing arrangement in which a company uses its receivables as collateral for a loan, effectively selling its right to future payments in exchange for immediate cash.

Factored Receivables Financing

A financial transaction in which a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.