Which of the Following Is Not a Reason Why China

question 18

Multiple Choice

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?

• A)The United States invests more in research and development than does China.
• B)Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy.
• C)Because of the low birth rate in China,the labor force will soon decline.
• D)The Chinese migration of rural workers to more productive urban jobs.

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Definitions:

Fixed Costs

Business expenses that remain unchanged regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Breakeven Volume

The quantity of output or sales at which total revenues equal total costs, resulting in no profit or loss.

Sales Revenues

The total amount of money generated from sales of goods or services by a company before any expenses are subtracted.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.