The Only Source of Growth in the Quantity of Labor

question 228

Multiple Choice

The only source of growth in the quantity of labor that is sustainable over long periods of time is

• A) an increase in the labor force participation rate.
• B) population growth.
• C) a decrease in labor productivity.
• D) a decrease in the unemployment rate.
• E) an increase in labor productivity.

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Definitions:

Money Market Instrument

Short-term financial instruments that are highly liquid and considered safe, such as treasury bills and certificates of deposit.

Preferred Stock

A class of ownership in a corporation with a fixed dividend, senior to common stock but junior to bonds in claim on assets and earnings.

Commercial Paper

Short-term unsecured promissory notes issued by companies to finance their short-term liabilities.

Bank Discount Yield

A measure of the annualized yield on a short-term, non-interest bearing security like a Treasury bill, calculated using the discount from face value and the time to maturity.