Asked by Jaydan MacMaster on May 30, 2024
Verified
Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of
A) total output.
B) stock of capital.
C) output per worker.
D) international trade.
Economy's Rate of Growth
The steady increase in the gross domestic product (GDP) or gross national product (GNP) of an economy over time, indicating economic expansion.
Output per Worker
A measure of labor productivity calculated by dividing total output by the total number of workers.
- Apprehend the role of labor productivity in augmenting real earnings and advancing wage rates.
Verified Answer
HS
Harbir SharmaJun 02, 2024
Final Answer :
C
Explanation :
Real earnings per worker can increase only at about the same rate as the economy's rate of growth of output per worker. This is because improvements in productivity (output per worker) are what enable increases in real wages over the long term.
Learning Objectives
- Apprehend the role of labor productivity in augmenting real earnings and advancing wage rates.
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