If a Nation's Productivity Drops as Compared to Competing Nations

question 224

Multiple Choice

If a nation's productivity drops as compared to competing nations, it will experience

• A) low inflation.
• B) a fall in its standard of living.
• C) higher profits.
• D) no loss of income.
• E) increased wealth.

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Definitions:

Market Participant

An entity or individual with the willingness and ability to buy, sell, or otherwise engage in transactions in a market.

Risk Aversion

The reluctance or avoidance of undertaking investment with uncertain outcomes, preferring outcomes that are more predictable.

Owner-Manager

An individual who both owns a significant part of a company and is actively involved in its management.

Agency Relationship

A situation where one party, known as the agent, is authorized to act on behalf of another, called the principal, in dealing with third parties.