Why Do Some Economists Point to a Decline in the Quality

question 48

Multiple Choice

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

• A)The average level of education of citizens of the United States rose dramatically during this period of time.
• B)The skill level required to perform many jobs increased during this period of time,although the skills of the labor force did not increase as quickly.
• C)Scores on standardized tests during that period of time began to rise.
• D)Increases in the amount of capital available reduced labor quality.

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Definitions:

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders, but retained by the company to be reinvested in its core business or to pay debt.

Permanent Account

Accounts that carry their ending balances over into the next accounting period, typically including assets, liabilities, and equity accounts.

Statement Of Changes

A financial statement that shows how a company's equity has changed during a specific period due to various factors like profits, losses, and dividend payments.

Shareholders' Equity

The residual interest or ownership held by investors in the assets of a corporation after deducting all its liabilities.