A Nation's Technological Gains Have Increased Labor Productivity And, as a Result

question 16

Multiple Choice

A nation's technological gains have increased labor productivity and, as a result, the average number of hours worked each week has been falling. How do Gross Domestic Product (GDP) calculations account for this shortening of the average workweek?

• A) Real Gross Domestic Product (GDP) does not factor in an increase in leisure time but per capita real Gross Domestic Product (GDP) does.
• B) Neither real Gross Domestic Product (GDP) nor per capita real Gross Domestic Product (GDP) includes the increase in leisure time that results, so the nation's actual economic growth will be overstated.
• C) Gains in leisure time are dollar-valued and included in real per capita Gross Domestic Product (GDP) gains.
• D) Gains in leisure time are not included in Gross Domestic Product (GDP), so any increase in real per capita Gross Domestic Product (GDP) will understate the nation's actual economic growth.

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Definitions:

Underarm Hair

Hair that grows under the arms, which begins to appear during puberty as a result of hormonal changes in the body.

Growth Spurt

A rapid increase in physical growth during puberty or other developmental stages.

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Traits that emerge during puberty, which are not directly involved in reproduction, but distinguish between the sexes.

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The biological process by which new individual organisms are produced from their parents.