Recall the Application About the Relationship Between the Growth in Productivity

question 24

Multiple Choice

Recall the Application about the relationship between the growth in productivity in the United States and
the Internet and information technology to answer the following question(s) . U.S. productivity growth
increased in the last half of the 1990s. Economists question whether the computer and Internet revolution
are responsible for this increase in productivity growth, and whether the increase is permanent or
temporary.
-According to this Application, the slowdown in labor productivity growth in the United States means that for U.S. workers, there has been a slowdown in

• A)the output produced per hour of work.
• B)the number of hours worked.
• C)the diminishing returns to labor.
• D)the labor force participation rate.

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Definitions:

Market Price

The present market valuation at which an asset or service can be sold or bought.

Coupon

In finance, a coupon refers to the annual interest payment paid to bondholders, typically expressed as a percentage of the face value.

Pay Interest Annually

The process of making a yearly payment to creditors or bondholders as compensation for the use of borrowed money.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, factoring in both interest payments and the capital gain or loss realized upon maturity.