Research and development contributes most to productivity growth through its impact on the
A)quantity of labor available
B)quantity of capital goods available
C)quality of labor available
D)quality of capital goods available
E)use of energy

Question

Quizplus · Accepted Answer

Research and development mainly contributes to productivity growth by improving the quality of capital goods available. This may enable firms to produce more output with the same amount of inputs, which results in higher productivity. While research and development may also improve the quality of labor available, it is secondary to the impact on capital goods. The quantity of labor and capital available and the use of energy are important inputs, but research and development primarily affects the quality rather than the quantity of these inputs.

Research and Development Contributes Most to Productivity Growth Through Its