The Method of Constructing a Measure of Technological Progress Relies

question 16

Multiple Choice

The method of constructing a measure of technological progress relies on which of the following assumptions?

• A) The investment rate does not change.
• B) Population growth is zero.
• C) Each factor of production is paid its marginal product.
• D) Population growth does not change.
• E) The saving rate does not change.

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Definitions:

Gain Sharing

A performance-related pay plan that gives employees incentives based on improvements in company performance, such as increased productivity or profitability.

Productivity Gains

Improvements in output or efficiency, allowing more to be accomplished with the same or fewer resources.

Profit-Sharing Plan

A company program that offers employees a share in the profits of the business, typically as a form of incentive or bonus.

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.