In a Particular Country in 1998,the Average Worker Needed to Work

question 117

Multiple Choice

In a particular country in 1998,the average worker needed to work 40 hours to produce 60 units of output.In that same country in 2008,the average worker needed to work 35 hours to produce 55 units of output.In that country,the productivity of the average worker

• A) decreased between 1998 and 2008,so we would expect the standard of living to have decreased accordingly.
• B) increased between 1998 and 2008,so we would expect the standard of living to have increased accordingly.
• C) decreased between 1998 and 2008,so we would expect inflation to have decreased accordingly.
• D) increased between 1998 and 2008,so we would expect inflation to have increased accordingly.

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Definitions:

Corporation

A legal entity that is separate from its owners, offering limited liability to its shareholders, and able to own property, enter contracts, and sue or be sued.

Partnership

A legal arrangement where two or more individuals share ownership of a business, including its liabilities and profits.

Cooperative

An association, which may or may not be incorporated, that is organized to provide an economic service to its members. Unincorporated cooperatives are often treated like partnerships for tax and other legal purposes.

Joint Venturer

An individual or entity that collaborates with another party in a joint venture, sharing in the risks and rewards of the business endeavor.