Suppose That the Economy Grows by 4 Percent, Total Factor

question 44

Multiple Choice

Suppose that the economy grows by 4 percent, total factor productivity grows by 3 percent, and the labor force increases by 6 percent.If labor and capital are the only inputs and labor contributes 40 percent to GDP, then the stock of capital must have _____.

• A)fallen by 5 %
• B)fallen by 3.33 %
• C)fallen by 2.33 %
• D)risen by 3 %
• E)risen by 1.8 %

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Definitions:

Positive Bargaining Range

indicates a scenario in negotiation where the lowest amount the seller is willing to accept overlaps with the highest amount the buyer is willing to pay.

Squeeze Negotiations

Tactics used to pressure an opposing party into offering more favorable terms by exploiting their vulnerabilities.

Hardball Tactics

Methods or strategies in negotiations that are assertive and may involve pressure or coercion.

Bargaining Position

The stance taken or the arguments and resources held by a party in a negotiation, influencing their capacity to negotiate terms.