Which Factors Explain Labour Productivity

question 167

Multiple Choice

Which factors explain labour productivity?

• A)technological change; the quantity of labour per hour worked
• B)diminishing returns; the quantity of labour per hour worked
• C)diminishing returns; the quantity of capital per hour worked
• D)technological change; the quantity of capital per hour worked
• E)population; the unemployment rate; and minimum wages

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Definitions:

Economic Rent

The extra income earned by a resource over its opportunity cost.

Price of Gas

The cost per unit (usually per gallon or liter) of gasoline, which can vary based on factors like location, demand, and taxes.

Backward-Bending Labor Supply Curve

A labor supply curve that illustrates how an individual's supply of labor can decrease as wages increase beyond a certain point, due to the preference for leisure over income.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods or services.