Which of the following would slow down productivity growth?
A) a change in the composition of the workforce so that more middle-aged people and fewer young people are working
B) a change in the composition of the workforce so that organizations hire more men who work steadily throughout the year than men who frequently enter and leave the workforce.
C) a decline in the quality of education
D) people starting to invest more in capital goods
E) firms starting to cut down the size of their labor force

Question

Quizplus · Accepted Answer

A decline in the quality of education would result in a less skilled workforce which would slow down productivity growth. Option A is not necessarily true, as middle-aged people can be just as productive as young people. Option B is not related to productivity growth. Option D and E would actually increase productivity growth as investing in capital goods and downsizing the labor force can lead to more efficiency and cost savings.

Which of the Following Would Slow Down Productivity Growth