Which of the following would be likely to cause a decrease in the labor productivity growth rate?
A)an increase in student achievement scores
B)a service sector that is growing as a percentage of GDP
C)increased spending on research and development
D)increases in capital formation
E)technological change

Question

Quizplus · Accepted Answer

B is the only choice that suggests an increase in the service sector, which typically has lower labor productivity growth rates than the manufacturing sector. The other choices all suggest factors that could potentially increase labor productivity growth rates.

Which of the Following Would Be Likely to Cause a Decrease