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Economic Growth and Labor Productivity Quiz

#1

Which of the following is a key determinant of economic growth?

Rise in labor productivity
Explanation

Labor productivity drives economic growth.

#2

What is labor productivity?

The measure of output per worker per unit of time
Explanation

Labor productivity quantifies output per worker over time.

#3

What effect does technological innovation typically have on labor productivity?

Increases it
Explanation

Technological innovation generally boosts labor productivity.

#4

What is the primary goal of policies aimed at increasing labor productivity?

To increase output per worker
Explanation

Policies target increasing output per worker to boost productivity.

#5

Which of the following is NOT a factor affecting labor productivity?

Government regulations
Explanation

Government regulations do not directly influence labor productivity.

#6

What is the Solow Residual, also known as Total Factor Productivity?

The part of output growth that cannot be attributed to the increase in inputs
Explanation

Solow Residual represents unexplained output growth unrelated to input increase.

#7

What is the relationship between economic growth and labor productivity?

Economic growth leads to higher labor productivity
Explanation

Economic growth drives increased labor productivity.

#8

Which of the following is NOT a measure of labor productivity?

Total employment rate
Explanation

Total employment rate does not measure individual worker output.

#9

What is the formula for calculating labor productivity?

Output / Labor
Explanation

Labor productivity is computed by dividing output by labor input.

#10

Which of the following policies could contribute to enhancing labor productivity?

Promoting employee training and skill development
Explanation

Training and skill development programs boost labor productivity.

#11

What role does human capital play in labor productivity?

Higher human capital leads to higher productivity
Explanation

Greater human capital correlates with increased productivity.

#12

Which of the following sectors typically has the highest labor productivity?

Manufacturing
Explanation

Manufacturing sector often exhibits the highest labor productivity.

#13

Which of the following is an example of capital deepening?

Replacing workers with automated machinery
Explanation

Capital deepening involves increasing capital per worker.

#14

Which of the following policies could potentially hinder labor productivity growth?

Imposing excessive regulations on businesses
Explanation

Excessive regulations may impede labor productivity growth.

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