Chapter 38, Problem 1MCQ

To determine

To find: Source of productivity growth.

Answer to Problem 1MCQ

Option E is correct.

Explanation of Solution

Physical capital, human capital, worker education and training, technological progress are all source of productivity growth.

Thus, option E is correct.

Option A

Increased physical capital is a source of change as it increases the level of production. The more the level of capital, more is the level of production up to a certain point.

Option B

Increased human capital is the level of skills, knowledge, jon-training etc. When there is more human capita, more would be the usage of existing capital, thereby increasing the productivity growth.

Option C

Increased worker education and worker means the increment in human capital. As human capital increases, more education is imparted, more would be productivity growth.

Option D

Technological progress is the updating of existing technology. The more the updating of technology, more would be the usage of existing technology.

Economics Concept Introduction

Production function shows the relation between input and output of a product. It shows the variation of output due to change in input.