How is productivity tied to standard of living?
What will be an ideal response?
Productivity is the number of goods and services a worker can produce per hour. In countries where workers can produce a large quantity of goods and services per hour, most people will experience a higher standard of living because increases in productivity lead to higher wages, and higher wages allow people to buy more of the goods and services that improve their lives. Thus, improved productivity leads to increases in standard of living.
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To avoid the conflicts and suffering of a "zero-sum society," an economy must maintain a
A) positive rate of productivity growth. B) positive rate of inflation. C) foreign trade surplus D) government budget deficit.
Sammy is willing to lend Oscar $625 today so Oscar can purchase a new set of tires for his pickup truck. Oscar agrees to pay the loan back plus 5% interest in one year. What is the future value of this loan?
A) $595.24 B) $656.25 C) $750.00 D) $812.50
In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?
A) ad valorem taxation B) excise taxation C) dynamic tax analysis D) static tax analysis
As a result of outsourcing,
A. Unemployment must increase in the long run. B. GDP definitely decreases. C. Profits decrease for domestic companies. D. Domestic workers may become more productive.