Which of the Following Is NOT a Source of Increased

question 39

Multiple Choice

Which of the following is NOT a source of increased factor productivity?

• A)an increase in average years of schooling
• B)an increase in on-the-job training
• C)increased investment in health
• D)an increase in the size of the capital stock
• E)an increase in the rate of innovation

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Definitions:

MPC

The marginal propensity to consume, which measures the portion of additional income that an individual spends on consumption instead of saving.

Multiplier

In macroeconomics, a factor that quantifies the effect of an initial change in the economy (such as investment or spending) on the total level of economic activity.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action.

Transfer Payments

Payments made by the government to individuals or groups without receiving any goods or services in return, such as social security or welfare benefits.