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:

Equilibrium

A situation in which the market price has reached the level at which quantity supplied equals quantity demanded.

Money Demanded

The total amount of money that households and businesses want to hold at a given time, often influenced by interest rates, income levels, and the economic outlook.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of banks, and ensuring stability of the financial system.

Federal Funds Rate

The rate at which banks exchange federal funds (balances maintained at Federal Reserve Banks) among themselves for overnight loans.