Some Economists Argue That the Productivity Slowdown of the Mid-1970s

question 5

Multiple Choice

Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that

• A)increased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.
• B)decreased production costs, causing firms to reorganize production to conserve energy, which reduced output per worker.
• C)increased production costs, causing firms to reorganize production to conserve energy, which increased output per worker.
• D)decreased production costs, causing firms to increase production, which reduced output per worker.
• E)increased participation in the labour force by people who would not have participated in the past.

---

Definitions:

Consideration

Something of value exchanged between parties in a contract, which is required for the agreement to be legally binding.

Estopped

Barred, impeded, or precluded.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has relied upon it to their detriment.

Preexisting Duty

An obligation or duty that already exists under contract law and does not constitute valid consideration for a new agreement.