Productivity Growth Is Important Because _____

question 65

Multiple Choice

Productivity growth is important because _____

• A) it is the only way an economy can increase GDP.
• B) a small decrease in productivity growth causes a large decline in GDP.
• C) a large increase in productivity growth causes a small decrease in GDP.
• D) it causes an increase in the quantity of all resources available in an economy.
• E) it ultimately increases a nation's standard of living.

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Definitions:

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as decided by the board of directors.

Cost Of Capital

The necessary yield a business needs to achieve on investment endeavors to preserve its market capitalization and secure capital.

Discount Rate

The interest rate used to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, essentially the benefits you could have received by taking another course of action.