ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Is the same thing as human capital
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Can be discovered but it can never be kept secret
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Is a determinant of productivity
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Does not play a role in the relationship that economists call the production function
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Detailed explanation-1: -Technological knowledge refers to society’s understanding of the best ways to produce goods and services. That means it describes technological progress within the economy. Technological knowledge can be public or proprietary. Public knowledge is openly available and can be used by all firms (e.g., computers).
Detailed explanation-2: -The main determinants of labor productivity are physical capital, human capital, and technological change. These can also be viewed as key components of economic growth. Physical capital can be thought of as the tools workers have to work with.
Detailed explanation-3: -The paper classifies productivity determinants into four types, namely ‘economic factors, ’ ‘institutions, ’ ‘social base, ’ and ‘physical base.
Detailed explanation-4: -Tastes and preferences are not determinants of productivity. The main factors determining productivity are human capital, physical capital, and technological knowledge.
Detailed explanation-5: -Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.