An Increase in Labor Productivity Necessarily Means an Increase in Real

question 110

Multiple Choice

An increase in labor productivity necessarily means an increase in real GDP per capita if:

• A)real GDP increases.
• B)the employment growth rate is greater than the population growth rate.
• C)the employment growth rate is less than the population growth rate.
• D)the size of the labor force remains constant.
• E)real GDP increases more rapidly than nominal GDP.

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Definitions:

Quality Costs

Expenses related to ensuring products or services meet company and customer quality standards, including prevention, appraisal, and failure costs.

Appraisal Costs

Costs that are incurred to identify defective products before the products are shipped to customers.

Quality Costs

Expenses associated with preventing, detecting, and correcting defective work, including costs of inspections, tests, and warranties.

Prevention

Measures or actions taken to reduce the risk of errors, defects, or damages in a production process or operation.