Suppose That Growth in Output That Can Be Attributed to Growth

question 185

Multiple Choice

Suppose that growth in output that can be attributed to growth in labor and capital is 2%. If output grows at a rate of 5%, it must be the case that

• A) growth in labor exceeds growth in capital.
• B) growth in capital exceeds growth in labor.
• C) the economy is experiencing technological progress.
• D) the economy is not spending enough on acquiring human capital.

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Definitions:

Subunit Power

The degree of power held by various organizational subunits, such as departments.

Contracted Out

The process of hiring external organizations or individuals to perform services or tasks rather than using in-house resources.

Organizational Uncertainty

Refers to the lack of predictability and clarity regarding the future direction, decisions, and actions within an organization.

Strategic Contingency

The concept that organizational strategies must be adaptable to current and foreseeable conditions to ensure effectiveness.