All of the Following Explain the Growth in Output Per

question 18

Multiple Choice

All of the following explain the growth in output per worker hour during the 20th century EXCEPT

• A)the quality of labor improved during that period.
• B)the quantity of labor increased during that period.
• C)the quality of capital improved during that period.
• D)the worker capital ratio decreased during that period.

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Definitions:

Disposable Income

Income available to households for saving and expenditure post-income tax deductions.

Consumption

The action or process of using goods and services for personal, household, or organizational needs.

Marginal Propensity

The proportion of an additional unit of income that is used for consumption; more specifically referred to as the marginal propensity to consume.

Net Wealth

The value of assets minus liabilities.