Use the Following to Answer Questions

question 59

Multiple Choice

Use the following to answer questions :
Scenario: Technological Progress and Productivity Growth in Techland
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.
-(Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to higher total factor productivity?

• A)2.0%
• B)5%
• C)8.75%
• D)6.5%

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Definitions:

Technological Dependency

The reliance on technology and technological systems for the operational and strategic management of an organization.

Significant Influence

The power to participate in, but not control, the financial and operating policy decisions of another entity, which is often evidenced by owning a substantial portion of the voting rights.

Policy-making Processes

The steps involved in the development, decision-making, and implementation of policies within an organization or government.

Dividend Policy

A company's strategy in deciding the size and pattern of dividend distributions to its shareholders.