Which of the following is most likely to increase productivity growth,as measured using GDP statistics?
A)reduced capital formation
B)decreased human capital
C)increased research and development
D)increased government regulation
E)higher prices for raw materials

Question

Quizplus · Accepted Answer

Increased research and development is likely to lead to productivity growth by discovering new technologies and methods to produce goods and services more efficiently. This can result in an increase in GDP through higher output and lower costs. The other options (reduced capital formation, decreased human capital, increased government regulation, and higher prices for raw materials) are all factors that are likely to inhibit productivity growth and reduce GDP.

Which of the Following Is Most Likely to Increase Productivity