Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of
A) total output.
B) stock of capital.
C) output per worker.
D) international trade.

Question

Quizplus · Accepted Answer

The real earnings per worker can increase only if productivity (output per worker) increases. In the long run, productivity is closely linked to the economy's rate of growth of total output. Therefore, option C is the best choice. While the stock of capital and international trade can contribute to economic growth, their effect on productivity is limited.

Over the Long Run, Real Earnings Per Worker Can Increase