If Per Capita GDP Growth Exceeds Labor Productivity Growth

question 44

Multiple Choice

If per capita GDP growth exceeds labor productivity growth,

• A)human capital must be increasing
• B)the labor-capital ratio must be decreasing
• C)employment must be growing faster than the population
• D)the data are incorrect; this could not occur
• E)physical capital must be increasing

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Definitions:

Impairment Losses

Financial losses recognized when an asset's carrying value exceeds its recoverable amount.

GAAP

Generally Accepted Accounting Principles (GAAP) are a framework of accounting standards, procedures, and rules used by accountants to prepare financial statements in the United States.

Long-lived Assets

Assets that provide economic benefit for more than one accounting period, typically including property, plant, and equipment.

Demolition

The process of tearing down or destroying a building or structure, usually in order to make way for new construction.