Which of the Following Is NOT an Important Factor Affecting

question 38

Multiple Choice

Which of the following is NOT an important factor affecting growth in labor productivity?

• A) the saving rate
• B) the speed with which prices fall
• C) the growth rate of physical capital
• D) the growth rate of labor productivity

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Definitions:

Participative Decision Making

Decision making in which individuals who are affected by decisions influence the making of those decisions.

Bounded Rationality

A concept that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes.

Preferences

Individual choices or inclinations towards certain options, objects, or outcomes over others.