Given the Fact That the Productivity Slowdown Affected All Industrial

question 22

Multiple Choice

Given the fact that the productivity slowdown affected all industrial countries, which of the following explanations for the productivity slowdown in Australia is not likely to be correct?

• A)a deterioration of Australia's education system causing a decline in the quality of labour
• B)tariff protection
• C)lack of sufficient technological change
• D)highly regulated markets

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Definitions:

Long-Run Equilibrium

A state in which all factors of production are variable, allowing firms to enter or exit, resulting in zero economic profit for perfectly competitive firms.

Competitive Industry

An industry where numerous firms compete against each other to sell similar products or services.

Output Level

The quantity of goods or services produced by a company, industry, or economic sector within a given time period.

Economic Rents

Earnings in excess of the minimum necessary to keep a factor of production in its current use, often associated with restricted supply or monopoly power.