ECONOMICS
ECONOMIC GROWTH
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Real Income/GDP
|
|
|
Productive capacity
|
|
|
Net social welfare
|
|
|
None of the above
|
Detailed explanation-1: -It is interpreted as the contribution to economic growth made by managerial, technological, strategic, and financial innovations.
Detailed explanation-2: -The standard, broad measure of technological advance is total factor productivity (TFP), which is the residual calculated by subtracting the contributions of labor and physical capital from GDP.
Detailed explanation-3: -Turning over recurring and monotonous tasks to powerful computers increases productivity. It also reduces the chance of human error. What’s more, letting technology do the heavy lifting allows you and your employees to focus on core business tasks and revenue-generating activities.
Detailed explanation-4: -One of the most widely used measures of productivity is Gross Domestic Product (GDP) per hour worked. This measure captures the use of labour inputs better than just output per employee.
Detailed explanation-5: -One of the most common methods used to measure technological progress is through the Solow Residual. The Solow Residual method works under the assumption that all changes in output that can’t be explained by changes in the capital stock or changes in the number of workers must be due to technological progress.