If Total Output Grows at 4 Percent Per Year While

question 145

Multiple Choice

If total output grows at 4 percent per year while labor and capital grow at 1.5 percent and 2.1 percent pre year, respectively, then:

• A) technology grew by 3.6 percent per year.
• B) technology declined by 0.4 percent per year.
• C) technology grew by 0.4 percent per year.
• D) there was no technological progress.

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Definitions:

IRS Form 940

A form used by employers in the United States to report their annual Federal Unemployment Tax Act (FUTA) tax.

Federal Unemployment Tax

A tax imposed on employers to fund state workforce agencies. Employers pay this tax to finance the unemployment compensation to workers who have lost their jobs.

Income Taxes

Taxes imposed by the government on the income generated by businesses and individuals.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, not considered as employees of the company.