If Both Total Employment and Total Output in an Economy

question 39

Multiple Choice

If both total employment and total output in an economy grow by 2 percent each year,then the annual growth in labor productivity in the economy over a decade will be equal to _____.

• A)0 percent
• B)2 percent
• C)10 percent
• D)20 percent
• E)2 percent times the size of the labor force

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Definitions:

Less Developed Country

A country with a lower level of industrialization, usually accompanied by lower living standards and lower HDI (Human Development Index) scores.

Expropriation

The act of a government taking privately owned property, either with compensation or without compensation, for public use.

Nonconvertible Currency

A currency that cannot be freely converted into other currencies on the foreign exchange market due to foreign exchange regulations.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often characterized by global trade and cultural exchange.