Which of the Following Best Describes the Relationship Between Productivity

question 103

Multiple Choice

Which of the following best describes the relationship between productivity and standard of living?

• A)International trade makes a country's productivity irrelevant.
• B)A country's standard of living and its productivity are closely related.
• C)Productivity only increases revenue to investors, while general well-being is not affected.
• D)A rich country can enjoy a high standard of living without the need for high productivity.

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Definitions:

Profit-Minimizing

A situation in which a business aims to reduce its profits to minimize taxes or for strategic reasons, contrary to typical profit-maximizing objectives.

Economic Profits

Economic Profits are the profit made by a company after deducting both explicit and implicit costs, representing the true profitability of the company.

Long Run

a period in which all factors of production and costs are variable, allowing firms to adjust all inputs.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some degree of market power.