Suppose That Real Output Is Growing at 3 Percent, the Labor

question 85

Multiple Choice

Suppose that real output is growing at 3 percent, the labor force is growing at 2 percent, and capital stock is growing at 1 percent. If labor contributes 70 percent to real GDP and capital contributes 30 percent to total output, then the growth in total factor productivity must equal

• A) 6 percent.
• B) 4.7 percent.
• C) 1.3 percent.
• D) 0.3 percent.
• E) 0 percent.

---

Definitions:

Expense Ratio

A measure of what it costs an investment company to operate a mutual fund, expressed as a percentage of the fund's average assets per annum.

Total Expense Ratio

It quantifies the total cost of fund management and operating expenses, expressed as a percentage of the fund’s total assets.

Gross Return

The total return on an investment before any deductions are made for costs or expenses.

Managed Investment Companies

Firms that invest pooled funds from clients, taking on the responsibility of investment decisions and management for those funds.