A decrease in which of the following will most likely decrease productivity?Elimination ToolSelect one answerATaxes.BGovernment spending.CConsumption.DCapital stock.EUnemployment.
Question
A decrease in which of the following will most likely decrease productivity?Elimination ToolSelect one answerATaxes.BGovernment spending.CConsumption.DCapital stock.EUnemployment.
Solution
The answer is D. Capital stock.
Here's why:
A. Taxes: A decrease in taxes would likely increase productivity as businesses would have more money to invest in their operations.
B. Government spending: A decrease in government spending could either increase or decrease productivity depending on where the cuts are made. If the cuts are made in areas that do not directly affect businesses, then productivity may not be affected. However, if the cuts are made in areas that do directly affect businesses, such as infrastructure or education, then productivity could decrease.
C. Consumption: A decrease in consumption would likely decrease demand for products and services, which could lead to a decrease in productivity. However, this is not a direct relationship as businesses could still maintain or even increase productivity in the face of decreased demand by becoming more efficient.
D. Capital stock: A decrease in capital stock, which refers to the physical goods businesses use to produce their products and services, would most likely decrease productivity as businesses would have fewer resources to work with.
E. Unemployment: A decrease in unemployment would likely increase productivity as more people would be working and contributing to the economy.
Similar Questions
Which of the following best explains the source of increases in productivity?ResponsesA increases in money supplyincreases in money supplyB increases in populationincreases in populationC increases in aggregate demandincreases in aggregate demandD increases in capital per worker
Economic growth is most likely to result in which effect for a business?A.A decrease in total productivityB.An increase in total productivityC.A decrease in capital investmentD.An increase in capital investment
Which of the following will decrease SRAS (short run Aggregate Supply), and increase ADGroup of answer choicesdecrease in wages, increase in consumptiondecrease in physical capital stock, increase in net exportsadvancement in technology, decrease in government purchasesdecrease in prices, increase in quantity
Which of the following causes the production function to shift up?ResponsesA an increase in the capital stock faster than the increase in the labor forcean increase in the capital stock faster than the increase in the labor forceB an increase in the capital stockan increase in the capital stockC a decline in the labor forcea decline in the labor forceD a technological improvement
Which of the following would likely slow a nation's economic growth?Elimination ToolSelect one answerAA decrease in the educational attainment of the population.BAn increase in the supply of money in circulation.CA decrease in personal income taxes.DAn increase in subsidies going towards medical research.EAn increase in government spending towards improving technology.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.