Market Structures and Productivity

What is productivity a measure of in economics?

• The efficiency of market transactions.

• The amount of goods and services produced per capita.

• The comparison of the amount of goods and services produced (output) with the inputs used to produce them.

• The total value of goods and services produced by an economy.

What is Human Capital?

• The physical goods used to produce other goods and services

• The knowledge and skills workers acquire through education, training, and experience

• The financial resources invested in a business

• The natural resources available to a society

What does Physical Capital include?

• The knowledge and skills of employees

• The financial investments in stock markets

• Human-made goods used to produce other goods and services, tools, and buildings

• The natural environment and ecosystems

How can investment in Human Capital and Physical Capital increase productivity?

• By decreasing the knowledge and skill of its people and businesses

• By limiting the amount of goods and services produced

• By expanding the knowledge and skill of its people and businesses

• By solely focusing on financial growth

How does productivity encourage companies?

• By decreasing their growth rate

• By allowing them to grow faster, which helps the economy grow in size and strengthen fiscal conditions

• By increasing investment taxes

• By reducing the impact on the standard of living

What is one of the ways productivity allows consumers to benefit?

• By getting less of what they want

• By increasing the time needed to get what they want

• By getting what they want faster or getting more in the same amount of time

• By raising prices

What are the effects of rising productivity on supply, prices, and wages?

• Decreases supply, increases prices, and lowers wages

• Increases supply, has no effect on prices or wages

• Decreases supply and wages, but increases prices

• Increases supply, decreases prices, and increases wages

Which of the following is NOT a way that productivity helps improve the standard of living?

• Impacts Wages

• Improve Technology

• Increases investment taxes

• Helps minimize investment taxes

What is collusion?

• A legal partnership between companies

• An illegal secret agreement or cooperation

• A government policy to regulate the market

• A public agreement between competitors

What is the main goal of collusion in the market?

• To promote fair competition

• To increase consumer choice

• To disrupt the market's equilibrium

• To encourage new market entrants