Use the Following to Answer Questions

question 276

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 technological progress contributed as a percentage of productivity growth?

• A)20%
• B)47%
• C)53%
• D)91%