Which of the Following Is NOT a Source of Productivity

question 122

Multiple Choice

Which of the following is NOT a source of productivity growth?

• A) decreasing the capital-to-labor ratio
• B) increasing the quality of the labor force
• C) improvements in technology
• D) All of these are sources of productivity growth.

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Definitions:

Diversified Portfolios

Investment strategies that spread investments across various assets to minimize risks associated with any single investment.

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.

Risk-free Rate

The interest rate at which an investor can invest in an absolutely risk-free security over a specified period.

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same or similar financial instruments on different markets or in different forms.