Which of the Following Would Slow Down Productivity Growth

question 51

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) a decline in the quality of education
• 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:

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Creative Destruction

A concept in economics which signifies the process by which new innovations lead to the demise of older technologies, leading to economic progress.

Federal Trade Commission

A federal agency charged with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Wheeler-Lea Act

The federal law of 1938 that amended the Federal Trade Commission Act by prohibiting unfair and deceptive acts or practices of commerce (such as false and misleading advertising and the misrepresentation of products).