Which of the Following Stands True for Factors That Affect

question 43

Multiple Choice

Which of the following stands true for factors that affect changes in productivity across countries and over time?

• A) It is more difficult to measure changes in the quality of goods than changes in the quality of services.
• B) As energy prices go up, energy-efficient capital goods become obsolete.
• C) It is believed that productivity grows more slowly in manufacturing industries than in services, because of the less labor-intensive nature of manufacturing industries.
• D) The key to efficient production is the allocation of resources to their best use.
• E) The greater the productivity, the more efficient the allocation of resources, and the less developed a country's financial market would be.

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Definitions:

Tax Return

A document filed with state or federal taxing authorities that reports income, expenses, and other pertinent tax information to calculate tax liability.

Short Run

A period in which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Fixed Plant Capacity

The maximum output that a facility can produce in a given period under normal conditions, determined by its physical size and design.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit or benefits gained from additional investment will eventually decline.