To What Do Economists Attribute the Rapid Growth of Labour

question 28

Multiple Choice

To what do economists attribute the rapid growth of labour productivity in the United States relative to other countries?

• A)the flexibility of U.S.labour markets and the efficiency of the U.S.financial system
• B)the strict government rules in the United States that regulate a firm's ability to hire and fire workers
• C)the low rate of job mobility in the United States
• D)the high level of unemployment benefits the United States pays relative to other countries like Canada
• E)the higher educational attainment of American workers relative to workers in other countries like Canada

---

Definitions:

Perfect Substitutes

Goods that a consumer is completely indifferent between, meaning they will substitute one for another at a constant rate regardless of any change in price or utility.

Perfect Complements

Goods that are always used together in fixed proportions, where the utility or value of one item increases with use of the other.

Pareto Efficient

An allocation condition in resources where any attempt to favor one individual results in a disadvantage to another.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate without making at least one individual or preference criterion worse off.