Given the Fact That the Productivity Slowdown of the Mid-1970s

question 20

Multiple Choice

Given the fact that the productivity slowdown of the mid-1970s to the 2014 affected all industrial countries, which of the following explanations for the productivity slowdown in Canada is not likely to be correct?

• A)A deterioration of the Canadian education system caused a decline in the quality of labour.
• B)High oil prices increased costs.
• C)Services became a larger fraction of GDP.
• D)Firms had to meet stricter environmental regulations.

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Definitions:

Illusory Correlations

The perception of a relationship between two variables when none actually exists.

Memory Biases

The tendency for memory to be distorted by previous experiences, desires, or the current emotional state.

Representativeness Heuristic

A belief that outcomes will always reflect characteristics of the process that generated them (e.g., an expectation that the outcome of a series of coin flips will always look random).

Coin Flips

A random process used to generate two equally likely outcomes, typically representing "heads" or "tails."