Increases in Productivity Are Caused by

question 89

Multiple Choice

Increases in productivity are caused by

• A)better education and training of the labor force.
• B)higher levels of literacy.
• C)improvements in technology.
• D)All of these responses are correct.

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Definitions:

Technological Knowledge

Society’s understanding of the best ways to produce goods and services.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Catch-Up Effect

The theory that poorer economies will tend to grow at faster rates than wealthier ones, allowing them to catch up in terms of income and other economic measures.