Why Is Productivity Important to Countries

question 97

Multiple Choice

Why is productivity important to countries?

• A) Productivity matters because it produces a higher standard of living.
• B) Greater productivity results in lower wages.
• C) Productivity increases supply and reduces demand for products.
• D) Productivity reduces taxation.
• E) None of these statements explains why productivity is important to countries.

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Definitions:

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and potentially higher prices.

Monopoly

A market configuration where there is only one seller offering a distinctive product in the marketplace.

Antitrust Laws

Legislation passed to prevent monopolies or unfair business practices that limit competition and harm consumers.

Market Share

The portion of a market controlled by a particular company, measured by the volume or value of its sales compared to the total market.