Some economists argued that the productivity slowdown of the mid-1970s to the early 1990s was due to changes in oil prices that:
A)increased production costs, causing firms to reorganise production to conserve energy, which reduced output per worker.
B)decreased production costs, causing firms to reorganise production to conserve energy, which reduced output per worker.
C)increased production costs, causing firms to reorganise production to conserve energy, which increased output per worker.
D)decreased production costs, causing firms to increase production, which reduced output per worker.

Question

Quizplus · Accepted Answer

The increase in oil prices caused firms to reorganize production to conserve energy, which led to increased production costs and reduced output per worker. Therefore, option A is the best choice.

Some Economists Argued That the Productivity Slowdown of the Mid-1970s