If the US Real Output Is Growing, and Labor Income Accounts for Accounts

question 100

Multiple Choice

If the U.S. real output is growing, and labor income accounts for about two-thirds of this:

• A) the unemployment rate is falling.
• B) on average, capital is getting poorer over time.
• C) income inequality is decreasing.
• D) on average, workers are getting richer over time.
• E) we are not getting any better off.

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Definitions:

Absolute Advantage

The ability of a party to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.

Economic Basis

The fundamental factors that determine the structure and operation of an economy, such as its resources, technology, and social relations.

Terms Of Trade

The ratio at which a country can trade its exports for imports from other countries, indicating the economic value of goods a country can procure through international trade.

Specializing

The process of focusing on and becoming an expert in a particular subject or skill, often leading to increased efficiency and productivity.