Which of the following is cited as a reason for the productivity swings in the United States?
A) a value system that promotes a materialistic philosophy
B) changes in the rate of growth of the capital-labor ratio
C) a shift in national output away from services toward goods
D) the depletion of our natural resources
E) swings in the balance of trade

Question

Quizplus · Accepted Answer

Changes in the rate of growth of the capital-labor ratio, which refers to the amount of capital (e.g. machines, technology) compared to the amount of labor (e.g. workers), can have a significant impact on productivity swings. For example, if there is a sudden increase in the amount of capital available, productivity may increase until the labor force can fully adapt to the changes. Conversely, if there is a decrease in the amount of capital available, productivity may decrease until the labor force can adjust. The other options listed may also have some level of impact, but they are not as directly linked to productivity swings as changes in the capital-labor ratio.

Which of the Following Is Cited as a Reason for the Productivity