Which of the Following Would Slow Down Productivity Growth

question 64

Multiple Choice

Which of the following would slow down productivity growth?

• A)A change in the composition of the workforce so that more middle-aged people and fewer young people are working
• B)A change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce
• C)The quality of education remaining unchanged
• D)People starting to invest more in capital goods
• E)Firms starting to cut down the size of their labor force

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Definitions:

Producing Product

The process of creating goods or services that are offered in the market for consumption or use.

Resources

Assets or inputs used to produce goods and services.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating the financial gain in excess of opportunity costs.

Accounting Profit

The total revenue of a firm less its explicit costs; the profit (or net income) that appears on accounting statements and that is reported to the government for tax purposes.