If Capital Per Hour of Labor Increases,GDP Per Hour of Labor

question 297

Multiple Choice

If capital per hour of labor increases,GDP per hour of labor

• A)decreases for a given level of technology.
• B)increases because the level of technology advances.
• C)increases for a given level of technology.
• D)decreases because the level of technology decreases.
• E)changes only if technology also advances.

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Definitions:

Interest Earn

The income received from lending money or depositing funds in interest-bearing accounts.

Compounded Monthly

This refers to the process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit, on a monthly basis.

Present Value

The present value of a future amount of money or sequence of cash flows when discounted at a certain rate of return.

Annual Investment

The total sum of money invested in a particular option or portfolio in a year.