If productivity of an economy increases then:
A)the amount of goods and services produced by a worker per hour increases.
B)the labor force increases.
C)the real GDP per capita decreases.
D)the labor force decreases.

Question

If productivity of an economy increases then:
A)​the amount of goods and services produced by a worker per hour increases.
B)​the labor force increases.
C)​the real GDP per capita decreases.
D)​the labor force decreases.

Quizplus · Accepted Answer

Productivity measures the efficiency of production in terms of output per unit of input. Therefore, if productivity increases, the amount of goods and services produced by a worker per hour increases, leading to an increase in real GDP per capita. Option B is incorrect as labor force growth is not necessarily linked to productivity, but rather to factors such as population growth and demographic changes. Option C is incorrect as increasing productivity generally leads to an increase in real GDP per capita. Option D is also incorrect as an increase in productivity does not necessarily lead to a decrease in the labor force.

If Productivity of an Economy Increases Then