The Slowdown in Labor Productivity Growth from 1973 to 1995

question 65

Multiple Choice

The slowdown in labor productivity growth from 1973 to 1995 ________ matched by a similar slowdown in MFP growth,suggesting that the growth rate of capital had ________ to do with the productivity problem.

• A)was,much
• B)was,little
• C)was not,much
• D)was not,little

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Definitions:

Production

The process of combining various inputs to make goods or services for consumption.

Comparative Advantage

The capacity of an individual or country to manufacture a given good or service more efficiently, incurring lower opportunity costs than their counterparts.

Opportunity Cost

The omission of possible gains that could come from different options when one is preferred.

Comparative Advantage

The competence of an individual, firm, or nation to forge a good or render a service with a lower forfeited opportunity compared to others in the market.