Productivity growth is important because:
a. it is the only way an economy can increase GDP
b. a small decrease in productivity growth causes a large decline in GDP.
c. a large increase in productivity growth causes a small decrease in GDP.
d. it causes an increase in the quantity of all resources available to an economy.
e. it ultimately increases a nation's standard of living.
e
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Explain the principle of the "second best."
What will be an ideal response?
Stores need not accept your check but must accept currency because:
a. currency is backed by gold b. checks are not money but currency is. c. currency is legal tender, but checks are not. d. currency is easier to handle. e. currency is a medium of exchange, but checks are not.
Show or explain the externality argument for government regulation of the environment. Describe a policy the government could adopt that would reduce pollution, but not require estimation of the optimal pollution tax
A firm's total profit is equal to the marginal cost of production multiplied by the quantity produced.
a. true b. false