One of the Factors Contributing to the Fact That Labor

question 88

Multiple Choice

One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is:

• A) China's larger stock of capital.
• B) the higher capital/labor ratio in China.
• C) the higher capital/labor ratio in the U.S.
• D) China's smaller stock of fossil fuels.
• E) the fact that much labor in the U.S. is in management.

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Definitions:

Consumption Function

As income rises, consumption rises, but not as quickly.

John Maynard Keynes

A British economist whose theories on government intervention in economies (Keynesian economics) have greatly influenced modern macroeconomic policies, particularly regarding the use of fiscal and monetary measures.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critique of capitalism and the development of Marxist theory.

Milton Friedman

An influential American economist and Nobel laureate known for his strong belief in free-market capitalism and minimal government intervention.