Productivity

question 17

Multiple Choice

Productivity

• A)is nearly the same across countries,and so provides no help explaining differences in the standard of living across countries.
• B)explains very little of the differences in the standard of living across countries.
• C)explains some,but not most of the differences in the standard of living across countries.
• D)explains most of the differences in the standard of living across countries.

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Definitions:

Marginal Cost

The monetary requirement for the generation of one additional unit of a good or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced. It measures the cost per unit of output.

Ceteris Paribus

a Latin phrase meaning "all other things being equal," used in economic models to isolate the effect of one variable.

Economies of Scale

The financial advantages gained by companies due to their operational scale, where there's a general decline in the cost per unit of output with the growth in scale.