Question

Q27. In the given diagram what do
points A,B, C, X and D in reference to
the use of resources.
100
Economy B
Quantity of Motion Pictures
Produced per year
non
Quantity of Video Games
Produced per year​

Answer 1

Explanation:

Objectives

By the end of this section, you will be able to:

Identify the role of labor productivity in promoting economic growth

Analyze the sources of economic growth using the aggregate production function

Measure an economy’s rate of productivity growth

Evaluate the power of sustained growth

Sustained long-term economic growth comes from increases in worker productivity, which essentially means how well we do things. In other words, how efficient is your nation with its time and workers? Labor productivity is the value that each employed person creates per unit of his or her input. The easiest way to comprehend labor productivity is to imagine a Canadian worker who can make 10 loaves of bread in an hour versus a U.S. worker who in the same hour can make only two loaves of bread. In this fictional example, the Canadians are more productive. Being more productive essentially means you can do more in the same amount of time. This in turn frees up resources to be used elsewhere.

What determines how productive workers are? The answer is pretty intuitive. The first determinant of labor productivity is human capital. Human capital is the accumulated knowledge (from education and experience), skills, and expertise that the average worker in an economy possesses. Typically the higher the average level of education in an economy, the higher the accumulated human capital and the higher the labor productivity.

The second factor that