The Largest Contributor to Productivity Increases Is ________, Estimated to Be

question 124

Multiple Choice

The largest contributor to productivity increases is ________, estimated to be responsible for ________ of the annual increase.

• A) management; over one-half
• B) Mr. Deming; one-half
• C) labour; two-thirds
• D) capital; 90%
• E) technology; over one-half

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Definitions:

Shut-down Price

The price level at which a business's revenue just covers its variable costs, below which it will cease operations.

Average Variable Cost

The average cost of variable inputs (like labor and materials) per unit of output produced.

Minimum

The lowest point on a nonlinear curve, where the slope changes from negative to positive.

Economic Profit

The difference between the total revenue received by a business and the total implicit and explicit costs of a business.