If the Contribution from Capital and Labor Growth in a Given

question 3

Multiple Choice

If the contribution from capital and labor growth in a given economy equals 4.0 percent and output growth equals 6.4 percent over that same period of time,then productivity growth must equal ________.

• A)25.6 percent
• B)10.4 percent
• C)2.4 percent
• D)1.6 percent

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.

Corporation

A legal entity that is separate from its owners, offering limited liability protection to its shareholders, and having the ability to raise funds by selling stock.

Balance Sheet Accounts

Accounts found on the balance sheet that include assets, liabilities, and equity, detailing the financial position of a company at a specific point in time.

Permanent Accounts

Accounts that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.