The Growth Rate of Output Per Person in the Economy

question 175

Multiple Choice

The growth rate of output per person in the economy is called

• A) factor growth.
• B) labor productivity growth.
• C) per-capita output growth.
• D) output growth.

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Definitions:

Salience of Prices

The degree to which the price of a good or service stands out to consumers and influences their purchasing decisions.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Law of Diminishing Marginal Utility

The principle that as a person consumes more of a product, the satisfaction (utility) gained from consuming each additional unit decreases.

Diminishing Marginal Utility

is an economic principle stating that as a person increases consumption of a product, there is a decline in the additional satisfaction (utility) that person gains from consuming one more unit of the product.