What is labor productivity? How does a country's standard of living relate to labor productivity?
What will be an ideal response?
Labor productivity refers to the amount of goods and services produced per worker. Per capita real GDP increases only if labor productivity increases, so, increases in a country's standard of living are tied to increases in labor productivity.
You might also like to view...
Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision
This policy, similar to the original "Buy American" provision in the 2009 U.S. stimulus bill, is likely to cause A) Canadian companies to pay lower prices for protected products. B) exporting countries to retaliate by placing trade barriers on Canadian imports. C) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home. D) Canadian manufacturers to become more efficient.
Refer to the above table. If planned investments were fixed at $16, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $630 initially. If government purchases were then raised from $0 to $4, other things constant, then the equilibrium real GDP would become:
The table shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.
A. $660
B. $630
C. $640
D. $650