1. Which of the following changes does not cause an increase in the quantity of goods and services that can be produced by one worker, or in one hour of work?

A. an increase in the quantity of capital per hour worked.

B. an increase in the literacy rate.

C. an increase in the number of workers.

D. technological change.

2. Which of the following changes will ensure that an economy experiences sustained economic growth?

A. increasing the amount of raw materials.

B. technological change.

C. increasing the amount of labor.

D. increasing the amount of capital.

Question

Business

Erik Stanton

25 April, 09:02

1. Which of the following changes does not cause an increase in the quantity of goods and services that can be produced by one worker, or in one hour of work?

A. an increase in the quantity of capital per hour worked.

B. an increase in the literacy rate.

C. an increase in the number of workers.

D. technological change.

2. Which of the following changes will ensure that an economy experiences sustained economic growth?

A. increasing the amount of raw materials.

B. technological change.

C. increasing the amount of labor.

D. increasing the amount of capital.

+3

Answers (1)

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Nathen · Answer 1

1) B) An increase in the literacy rate. While a literate worker will probably be more productive than a illiterate worker, the effect of literacy on productivity is indirect, not direct. Besides, some activities do not require literacy: many blue collar jobs have been carried out by people who can't read for millenia, and their productivity does not directly depend on the capacity to read and write.

2) D) Increasing the amount of capital. Because the more capital there is, the more of it can be invested in production, and the more of it is invested, the higher the output.