In the Romer Model,as More Labor Is Devoted to Research

question 46

Multiple Choice

In the Romer model,as more labor is devoted to research and development there is ________.

• A)an immediate increase in output per capita and a permanent increase in output per capita
• B)an immediate decrease in output per capita and a permanent increase in output per capita
• C)an immediate increase in output per capita and a permanent decrease in output per capita
• D)an immediate decrease in output per capita and a permanent decrease in output per capita

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Activity Base

A measure or factor used for allocating costs to activities, typically driving the amount of expense incurred in producing a product or providing a service.

Service Departments

Units within an organization that provide support services to other departments but do not directly contribute to revenue generation.

Return On Investment

A measure used to evaluate the profitability of an investment, calculated as a ratio of net profit to the initial cost of the investment.