Labor Productivity Depends On

question 141

Multiple Choice

Labor productivity depends on:

• A)the effectiveness of government.
• B)the amount of capital available in an economy.
• C)the proportion of the labor force that is unionized.
• D)the size of an economy.
• E)the size of the labor force in an economy.

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Definitions:

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, maximizing overall social welfare.

Economically Inefficient

A condition where resources are not utilized in the best possible manner, leading to potential waste or losses in terms of welfare or output.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the per-unit cost of production.

Marginal Cost

Refers to the increase in total production costs resulting from the production of one additional unit of a good or service.