Asked by Veronique HisgirlHisworld on May 10, 2024
Verified
One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is:
A) China's larger stock of capital.
B) the higher capital/labor ratio in China.
C) the higher capital/labor ratio in the U.S.
D) China's smaller stock of fossil fuels.
E) the fact that much labor in the U.S. is in management.
Capital/Labor Ratio
The capital/labor ratio is a measure used in economics to indicate the amount of capital relative to the quantity of labor used in the production process.
Labor Productivity
The measure of the economic output produced per unit of labor input.
U.S.
A country consisting of 50 states, a federal district, and various territories, known formally as the United States of America.
- Analyze the determinants behind the disparities in workforce productivity among various economies.
Verified Answer
SI
shafiq IslamMay 15, 2024
Final Answer :
C
Explanation :
The higher capital/labor ratio in the U.S. is a factor contributing to the higher labor productivity compared to China. This means that there is more capital available to each worker in the U.S., which allows them to be more productive in their work. China may have a larger stock of capital overall, but if it is spread out among a larger population of workers, each worker has less capital to work with and may be less productive as a result.
Learning Objectives
- Analyze the determinants behind the disparities in workforce productivity among various economies.