In the Past 60 Years or So, Labor's Share of GDP

question 44

Multiple Choice

In the past 60 years or so, labor's share of GDP in the United States ________.

• A) is roughly two-thirds
• B) is exactly 50 percent
• C) is roughly one-third
• D) is equal to capital's income share
• E) has risen sharply

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Definitions:

Employment

The condition of having paid work, or the total number of people who are currently employed or actively looking for work.

Variable Input

Inputs or resources whose quantity can be changed in the short term to adjust the level of production, such as labor or raw materials.

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by the demand and supply of labor.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding other factors constant.