Which of the following implies a decline in labor productivity in an economy?
A)A high rate of growth in capital formation
B)An improvement in input quality
C)A decrease in the production of goods and services
D)An increase in the budget surplus in the economy
E)A decrease in the prices of goods and services

Question

Quizplus · Accepted Answer

A decline in labor productivity means that less output is being produced per unit of labor input. Therefore, a decrease in the production of goods and services (Choice C) would signal a decline in labor productivity. Choices A and B both suggest an increase in productivity as capital formation and input quality improve. Choice D is unrelated to labor productivity, and Choice E suggests a decrease in prices but says nothing about productivity levels.

Which of the Following Implies a Decline in Labor Productivity