Question : 21) What two factors the keys to determining labor productivity? A) : 1388362

21) What two factors are the keys to determining labor productivity?

A) the business cycle and the growth rate of real GDP

B) the growth rate of real GDP and the interest rate

C) technology and the quantity of capital per hour worked

D) the average level of education of the workforce and the price level

22) If labor productivity growth slows down in a country, this will

A) accelerate the increase in real GDP per capita.

B) accelerate the increase in nominal GDP.

C) slow down the increase in real GDP per capita.

D) slow down the increase in nominal GDP.

23) If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.

A) labor force participation

B) the quantity of goods or services that can be produced by one hour of work

C) the working-age population

D) nominal GDP

Article Summary

According to the Office for National Statistics in the United Kingdom, productivity in the UK in 2012 was well below the average of the G7 countries, only faring better than Japan. The G7 is a group of the seven most industrialized countries, and includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Compared to the G7 average, the UK was  16% less productive per hour worked, and output was 19% worse when measured on a per worker basis. The productivity gap was the largest for the UK since 1994. Worker productivity has increased in all of the G7 nations except for the UK since 2007, where it has fallen by two percentage points. The most productive workers were in the United States, where workers were 29 percentage points more productive per hour worked than in the UK.

Source: “UK workers much less productive than others in the G7,” Guardian, September 18, 2013.

24) Refer to the Article Summary. Unlike in the UK, labor productivity in the other G7 nations has increased since 2007. An increase in labor productivity

A) will increase the labor force participation rate.

B) allows the average consumer to increase consumption.

C) will create short-run, but not long-run, economic growth.

D) will increase output and decrease wages in the long run.

25) Refer to the Article Summary. ________ depend on increases in labor productivity.

A) Advances in technology

B) Decreases in the inflation rate

C) Decreases in the unemployment rate

D) Increases in real GDP per capita

26) Which of the following is an example of human capital?

A) a computer

B) a factory building

C) a college education

D) a software program

27) Human capital refers to which of the following?

A) the quantity of goods and services that can be produced by one worker or by one hour of work

B) the accumulated knowledge and skills workers acquire from education and training or from their life experiences

C) manufactured goods that are used to produce other goods and services

D) physical equipment that is made by human laborers, not machines

28) Long-run economic growth requires all of the following except

A) technological change.

B) increases in capital per hour worked.

C) government provision of secure property rights.

D) political instability.

29) Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy?

A) growth in capital per hour accompanied by technological change

B) increases in labor force participation rates as workers who are out of the labor force pursue rising wages

C) a shift of workers in the economy from the agricultural sector to the nonagricultural sector

D) an influx of immigrant labor into an economy without any accompanying technological change

30) India’s rapid growth can be explained by

A) reduced regulations and market-based reforms.

B) investment in human capital from 1947 through 2013.

C) the movement of workers from the agricultural sector to the manufacturing sector.

D) an increase in labor force participation.