Which of the Following Would Slow Down Productivity Growth

question 64

Multiple Choice

Which of the following would slow down productivity growth?

• A)A change in the composition of the workforce so that more middle-aged people and fewer young people are working
• B)A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce
• C)The quality of education remaining unchanged
• D)People starting to invest more in capital goods
• E)Firms starting to cut down the size of their labor force

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Definitions:

Comparative Advantage

The knack of entities, whether they are people, companies, or countries, to bring forth goods or services at opportunity costs that undercut those of competitors.

Opportunity Costs

Opportunity Costs represent the benefits that are foregone by choosing one option over an alternative one.

Specialization

The focus by an individual, firm, or country on producing a limited range of goods or services, often to improve efficiency and productivity.