In the Absence of Technological Progress,which of the Following Remains

question 58

Multiple Choice

In the absence of technological progress,which of the following remains constant in the steady state equilibrium?

• A)investment per worker
• B)output per worker
• C)saving per worker
• D)all of the above
• E) only A and B

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Definitions:

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits, implying assets or expenses.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used to adjust the gross accounts receivable to its net realizable value.

Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something, often used in planning and decision-making.

Balance Sheet Approach

A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.