Productivity Is the Amount of Goods and Services

question 178

Multiple Choice

Productivity is the amount of goods and services

• A)an economy produces.It is not linked to a nation's economic policies.
• B)an economy produces.It is linked to a nation's economic policies.
• C)produced for each hour of a worker's time.It is not linked to a nation's economic policies.
• D)produced for each hour of a worker's time.It is linked to a nation's economic policies.

---

Definitions:

Average Revenue Product

The increase in total revenue resulting from employing one more unit of a resource, holding all other factors constant.

Substitution Effect

The alteration in the consumption of goods as a result of changes in their relative prices, leading consumers to substitute more expensive items with cheaper alternatives.

Output Effect

The change in total revenue resulting from selling additional units due to a price decrease, in the context of price elasticity of demand.

Income Effect

A change in the quantity demanded of a product that results from the change in real income (purchasing power) caused by a change in the product’s price.