Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?
A)The average level of education of citizens of the United States rose dramatically during this period of time.
B)The skill level required to perform many jobs increased during this period of time,although the skills of the labor force did not increase as quickly.
C)Scores on standardized tests during that period of time began to rise.
D)Increases in the amount of capital available reduced labor quality.

Question

Quizplus · Accepted Answer

Some economists believe that the productivity slowdown in the mid-1970s can be attributed to a decline in the quality of labor. This is because the skill level required to perform many jobs increased during this period of time, although the skills of the labor force did not increase as quickly. This mismatch between the skills demanded by the labor market and the skills possessed by the workers led to a decline in labor quality and consequently, a productivity slowdown.

Why Do Some Economists Point to a Decline in the Quality