Last Year a Country Had 800 Workers Who Worked an Average

question 45

Multiple Choice

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

• A)higher this year than last year.A possible source of this change in productivity is a change in the size of the capital stock.
• B)higher this year than last year.A change in the size of the capital stock does not affect productivity.
• C)lower this year than last year.A possible source of this change in productivity is a change in the size of the capital stock.
• D)lower this year than last year.A change in the size of the capital stock does not affect productivity.

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Definitions:

Perpetuity

An infinite series of equal payments made at fixed intervals, with no end date.

Withdrawals

The act of removing funds from a bank account, investment, or savings plan, often associated with personal or business financial management.

Retire

To retire means to withdraw from active working life, often due to reaching a certain age or financial independence that enables one to live without needing to earn a regular wage.

Cash Flow Stream

A cash flow stream is a series of cash flows associated with an investment over a period of time.