10.

Which of the following is most likely to cause the productivity of labour to increase? a. higher money wage rates

b. a higher rate of investment in human and physical capital

c. more flexible working hours and improved retirement plans

d. none of the above

ANSWER: B

POINTS: 0 / 1

11. Suppose that factory output rose from 50,000 units to 55,000 units while labour hours rose from 1100 to 1200. Which of the following is true? a. Labour productivity remained unchanged.

b. Labour productivity increased slightly.

c. Labour productivity decreased slightly.

d. Labour productivity increased sharply.

ANSWER: B

POINTS: 0 / 1

12. Which of the following would be most likely to cause the real income per person of poorer countries to rise?

a. a more rapid population growth

b. a rapid rate of inflation

c. an international minimum-wage law

d. an increase in foreign investment that enhanced the productivity of the labour force

ANSWER: D

POINTS: 0 / 1

13. If a production function has constant returns to scale, then:

a. doubling inputs will double output.

b. doubling inputs will triple output.

c. doubling inputs will cause output to increase, but the increase in output will be less than

the increase in inputs.

d. doubling inputs will decrease output.

ANSWER: A

POINTS: 0 / 1

14. The most important source of rising living standards over time is: