Suppose That Growth in Output That Can Be Attributed to Growth

question 116

Multiple Choice

Suppose that growth in output that can be attributed to growth in labor and capital is 3%. If output grows at a rate of 5%, it must be the case that:

• A) the economy is not spending enough on acquiring human capital.
• B) growth in capital exceeds growth in labor.
• C) both labor and capital are becoming more productive.
• D) growth in labor exceeds growth in capital.

Understand the most effective types of communication for different audiences and purposes.

Recognize the impact of clichés on the tone and effectiveness of writing.

Provide constructive feedback in professional contexts.

Understand the principles of effective microblogging in a professional setting.

---

Definitions:

Excess Return

The return on an investment over the risk-free rate or over an investment's benchmark.

Rapid Growth

Rapid Growth refers to a significant and faster-than-average increase in the size, revenue, or market share of a company or economy.

Economy

The large system that encompasses all production, exchange, distribution, and consumption of goods and services within a certain area. It involves activities and interactions among individuals, businesses, and governments.

Minimum-Variance Portfolio

A portfolio constructed to achieve the lowest possible risk (variance) for a given level of expected return, optimizing the risk-return tradeoff.