Asked by
Haylee Heidlage
on Nov 11, 2024Verified
If per capita GDP growth exceeds labor productivity growth,then:
A) human capital must be increasing.
B) the labor-capital ratio must be decreasing.
C) employment must be growing faster than population.
D) population must be growing faster than employment.
E) physical capital must be increasing.
Per Capita GDP Growth
The rate of growth of the Gross Domestic Product (GDP) per person in a specific area, commonly used to indicate economic health and living standards.
Labor Productivity Growth
An increase in the amount of goods and services produced per hour worked by employees, which is a key determinant of economic growth and competitiveness.
Labor-Capital Ratio
The ratio of labor inputs to capital inputs in production, reflecting the relationship between the workforce and machinery or capital assets.
- Understand the implication of labor productivity growth on real GDP per capita.
Verified Answer
SE
Learning Objectives
- Understand the implication of labor productivity growth on real GDP per capita.