11) Labor productivity is
A) the average amount produced times the number of workers.
B) the average amount produced times the number of people in the labor force.
C) the average amount produced per worker.
D) the rate of change in the total amount produced per worker.
12) The most important thing about higher labor productivity is that it means
A) we are doing better than anyone else is.
B) we can compete well with other nations.
C) we can achieve a happier population.
D) we can have a higher standard of living.
13) Economic growth can be defined as
A) the rate of growth in the productivity of labor.
B) the rate of growth in the productivity of capital.
C) the rate of growth of labor plus the rate of depreciation of capital.
D) the rate of growth of labor plus the rate of growth of capital plus the rate of growth in the productivity of labor and capital.
14) Productivity relates to
A) working harder over time.
B) working longer over time.
C) producing the same output with fewer labor hours.
D) producing the same output with more labor hours.
15) Which of the following is an example of a measure of labor productivity?
A) Farm workers produce 30 bushels of wheat per worker per day.
B) Autos get 30 gallons to the mile.
C) The growth rate of per capita real GDP is 3.5 percent per year.
D) Wages increase by 3.5 percent per year for 5 years.
16) Labor productivity increases when
A) the population increases.
B) output increases even if the labor force has decreased.
C) output increases at the same rate as the labor force increases.
D) output increases faster than population increases.
17) In the United States, the main contributor to economic growth is due to the growth in
A) physical capital.
B) education (human capital).
C) labor resources.
D) capital and labor productivity.
18) Improvements in labor productivity
A) affect the level of wages, but do not affect the rate of economic growth.
B) affect the level of profit, but do not affect the rate of economic growth.
C) hinder economic growth, because they cause unemployment.
D) contribute to economic growth.
19) Labor productivity is commonly measured as
A) the number of workers divided by real GDP.
B) the change in real GDP divided by change in number of workers.
C) nominal GDP divided by number of workers.
D) real GDP divided by number of workers.
20) An increase in human capital will tend to cause which of the following?
A) increase economic growth
B) increase the standard of living
C) increase labor productivity
D) all of the above