Labor Productivity Increases When

question 167

Multiple Choice

Labor productivity increases when

• A) the population increases.
• B) output increases even if the labor force has decreased.
• C) output increases at the same rate as the labor force increases.
• D) output increases faster than population increases.

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Definitions:

Reactance

A psychological reaction that occurs when an individual feels their freedom to choose is being restricted, leading them to resist or do the opposite of what is being imposed.

Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Temporal Discounting

The tendency for people to value immediate rewards more highly than future rewards, often leading to impulsive decisions.

Risk Aversion

The tendency to prefer certainty over uncertainty, characterized by a preference for safe options over risky ones.