Suppose the current level of output is 5000.A 10% increase in productivity would increase the current level of output to
A)5050.
B)5100.
C)5500.
D)6000.

Question

Quizplus · Accepted Answer

A 10% increase in productivity means that the output would increase by 10% of the current level of output. Therefore, the increase in output would be 10/100*5000 = 500. Adding this to the current level of output, we get 5000 + 500 = 5500. Thus, the correct answer is C.

Suppose the Current Level of Output Is 5000