Asked by Devante Starks on Jul 17, 2024
Verified
The most important reason for our slow rate of productivity growth over the last three decades (of those listed below) is
A) lagging business sales.
B) foreign imports.
C) our low savings rate.
D) high tax rates.
Productivity Growth
The rate at which a company or economy can produce more goods and services with the same amount of labor, capital, energy, and materials, often seen as a key driver of economic growth.
Savings Rate
The proportion of disposable income that is saved by households rather than spent on goods or services.
- Examine elements affecting savings, investment, and the pace of economic expansion.
- Analyze the consequences of population movement on economic development and output.
Verified Answer
SX
Siyabonga XimbaJul 19, 2024
Final Answer :
C
Explanation :
Low savings rate means less investment in capital, research and development which ultimately slow down productivity growth. Inadequate investment will lead to businesses relying on outdated technology and processes, reducing their efficiency and productivity.
Learning Objectives
- Examine elements affecting savings, investment, and the pace of economic expansion.
- Analyze the consequences of population movement on economic development and output.