Measured Productivity Growth for the United States Declined Following the Great

question 128

Multiple Choice

Measured productivity growth for the United States declined following the Great Recession. Which of the following explanations for that phenomenon suggests that measured productivity has failed
To account for actual gains?

• A) high debt levels, accumulated prior to the Great Recession
• B) creation of new products that are essentially free to consumers
• C) overcapacity of firms, implying a greater ability to produce than is currently measured
• D) stalled technological progress that has encouraged greater consumption of leisure activities

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Definitions:

Absorption Costing

A bookkeeping approach encompassing the entirety of production expenses, such as direct materials, direct labor, and both fluctuating and consistent overhead costs, within a product's price.

Production Costs

Expenses associated with the process of producing goods or services.

Short-term Pricing

Pricing strategies focused on immediate objectives rather than long-term goals, such as clearing out inventory or entering a new market.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.