Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?
A. signalling theory
B. human capital theory
C. efficiency wage theory
D. reservation wage theory
E. compensating differentials theory
Answer: B
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Indicate whether the statement is true or false
Davis Construction Inc Davis Construction began operation on January 1, 2012, with an initial investment of $100,000 from each of its three stockholders. During the year ending 2012 Davis Construction had net income of $125,000 and paid dividends of $50,000. Refer to the information provided for Davis Construction, Inc and calculate its retained earnings balance at December 31, 2012
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