Most economists believe that the single largest cause of rising material living standards over long periods of time is
A)productivity growth.
B)rising employment.
C)growth in the capital stock.
D)real GDP growth.
E)rising real wages.

Question

Quizplus · Accepted Answer

Productivity growth refers to the increase in the amount of output produced per unit of input. As productivity increases, businesses can produce more goods and services with the same amount of resources or produce the same amount of goods and services with fewer resources, leading to increased efficiency and higher material living standards. Real GDP growth, rising employment, and growth in the capital stock can also contribute to rising living standards, but productivity growth is the primary driver of long-term improvements in material well-being. Rising real wages may result from productivity growth, but they are not the cause of it.

Most Economists Believe That the Single Largest Cause of Rising