Which of the following is most likely to increase productivity growth,as measured using GDP statistics?
A)Reduced capital formation
B)Decreased human capital
C)Increased research and development
D)Increased government regulation
E)Higher price of a raw material

Question

Quizplus · Accepted Answer

Increased research and development is most likely to increase productivity growth as it leads to the development of new technologies and innovative production methods, which in turn increase efficiency and output. The other choices actually hinder productivity growth as reduced capital formation and decreased human capital means less investment in physical and intellectual resources, increased government regulation can lead to additional costs and bureaucracy, and a higher price of a raw material can increase costs for producers, all of which can reduce productivity.

Which of the Following Is Most Likely to Increase Productivity