As a Country Devotes More of Its Resources to Education

question 17

Multiple Choice

As a country devotes more of its resources to education, we can expect:

• A) output to stay constant for all time.
• B) output to fall in the short run but rise in the long run.
• C) output to rise in the short run but fall in the long run.
• D) output to rise in the short and long runs.
• E) higher rates of inflation.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.

Financial Accounting

The branch of accounting that focuses on the preparation of financial statements for external users.

Extraordinary Gains and Losses

Unusual and infrequent events that significantly affect a company's financial performance, reported separately on the income statement to provide a clearer picture of ongoing operations.