The Growth of "Total Factor Productivity," or the "Solow Residual

question 33

Multiple Choice

The growth of "total factor productivity," or the "Solow residual," is equal to the growth in real GDP

• A)accounted for by changes in all factors of production but excluding technological changes.
• B)accounted for by changes in all factors of production and including technological changes.
• C)that cannot be accounted for by changes in the quantities of labour and capital.
• D)that cannot be accounted for by changes in technology.
• E)that cannot be accounted for by changes in the labour force.

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Definitions:

ESOs

Employee Stock Options; a form of equity compensation granted by companies to their employees and executives, allowing them to purchase company shares at a set price for a certain period.

Cash Wages

Payments made to employees in the form of physical currency or through direct deposits to their bank accounts as compensation for their labor.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuer's equity shares at certain times during the bonds' life, usually at the discretion of the bondholder.

Implicit Call Option

An option embedded in a financial security that allows the issuer to repurchase it at a predetermined price before maturity, not explicitly stated within the contract.