Use the Following to Answer Questions

question 81

Multiple Choice

Use the following to answer questions :
Scenario: Productivity
The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years.
-(Scenario: Productivity) Look at the scenario Productivity. How much has growing physical capital per worker contributed as a percentage of total productivity growth?

• A)80%
• B)53%
• C)30%
• D)9%

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Definitions:

Reality

The sum or aggregate of all that is real or existent within a system, as opposed to that which is only imaginary.

Material

Consisting of physical substance; relating to physical matter and objects as opposed to spiritual or intellectual qualities.

Spiritual

Relating to or affecting the human spirit or soul as opposed to material or physical things; often concerns a sense of connection to something greater than oneself.

Ideas of the World

Refers to the various concepts, beliefs, and perspectives that people have about the world and its nature.