Suppose a country experiences an increase in output per worker. Such a development represents which of the following?
A) a decrease in economic growth
B) an increase in labor productivity
C) a reduction in the saving rate
D) an increase in population growth

Question

Quizplus · Accepted Answer

An increase in output per worker is an increase in labor productivity. This means that each worker is producing more output, indicating an increase in efficiency and potentially higher economic growth. Therefore, option A is incorrect. An increase in output per worker does not necessarily lead to a reduction in the saving rate, so option C is incorrect. It also does not indicate an increase in population growth, so option D is also incorrect.

Suppose a Country Experiences an Increase in Output Per Worker