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

question 48

Multiple Choice

In a particular country in 1998,the average worker needed to work 40 hours to produce 100 units of output.In that same country in 2008,the average worker needed to work 36 hours to produce 72 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:

Bonds Payable

A long-term debt instrument issued by a corporation or government, representing a promise to pay a specified sum of money at a future date along with periodic interest payments.

Common Stock

A type of security representing ownership in a corporation, with holders having a claim on a portion of the company's assets and earnings.

Noncash Investing

Investing activities that do not involve cash transactions, often involving the trade of assets or issuance of equity or debt.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period.