Which of the following is likely to cause a decrease in labor productivity?

A) An increase in student achievement scores
B) A service sector that is growing slower than the growth rate of GDP
C) An increased spending on research and development
D) A decrease in capital formation
E) A low federal budget deficit

Labor Productivity

An indicator of economic efficiency that assesses the quantity of goods and services generated for each labor hour.

Capital Formation

Capital Formation is the process of building up the physical and financial assets of an economy, including investments in buildings, equipment, infrastructure, and inventories.

Student Achievement

Measurement of educational attainment or the level of academic success received by students.