Financial capital
A) depends on saving and borrowing decisions.
B) is accumulated investment.
C) depreciates each year.
D) is another name for the machines and tools that businesses buy.
E) is independent of physical capital.
A
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Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries? A) The growth rate of real GDP per capita in Alpha and Beta will be the same. B) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. D) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
The profits a corporation keeps to finance future expansion are known as
A) preferred stock. B) dividends. C) retained earnings. D) capital gains.