The Reason Why Small Changes in Productivity Growth Rates Have

question 29

Multiple Choice

The reason why small changes in productivity growth rates have large long-term effects on economic growth over the long run is that

• A)lower productivity growth makes labor discouraged,compounding the problem
• B)lower productivity growth effects on the economy are compounded over the years,leading to large cumulative effects
• C)when the productivity growth rate falls,output actually falls
• D)lower productivity growth for one resource means lower productivity growth for all resources
• E)output usually falls when productivity grows

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Definitions:

Material Charge Formula

Typically refers to the calculation used to determine the cost of raw materials used in production or service delivery.

Handling And Storage

Activities involved in moving and placing products or materials in a warehouse or storage area.

Labour Hour

A measure of work effort, typically used in costing to allocate overhead based on the number of hours worked.

Competitive Bidding

The process where various suppliers or contractors submit their bids to win a contract, often used to ensure fairness and value in public and private procurement.