CLEP Microeconomics Exam Prep

Category - Microeconomics

Productivity refers to the quantity of goods and services that a worker can produce from each hour of work. The following factors affect productivity except:
  1. Physical capital
  2. Natural resources
  3. Manufacturing base
  4. Technological knowledge
Explanation
Answer - C - Manufacturing base is not one of the factors that affect productivity.

Key Takeaway: The productivity of an individual worker or his/her ability to produce certain goods and services from each hour of work is affected by a number of factors including physical capital such as building and factory infrastructures. Productivity is also affected by the availability of natural resources and presence of technological knowledge.
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