Understanding Productivity in the U.S. Economy

What does GDP stand for?

• General Domestic Performance

• Gross Domestic Product

• General Domestic Product

• Gross Domestic Performance

What is labor productivity?

• Output produced per hour of work

• The efficiency of government workers

• The total output of a country

• The number of hours worked by an average employee

Which factor has NOT been suggested as a reason for the decline in U.S. productivity?

• The pandemic

• Work from home trends

• Increased educational attainment

• Rising temperatures

What does a decline in productivity indicate about an economy?

• It is becoming more efficient

• It is experiencing rapid growth

• It may face challenges in growth and living standards

• It is shifting towards a manufacturing-based economy

How is productivity measured?

• Using GDP growth rates

• By comparing output growth with hours worked

• Through employee satisfaction surveys

• By the number of products manufactured

What challenge does the service economy pose to measuring productivity?

• Service jobs are less common

• Services are intangible and harder to measure

• Services are always more efficient than manufacturing

• Service economy is too small to impact productivity

Why is measuring productivity challenging in a service economy?

• Due to the high volume of products manufactured

• Because service jobs are less valuable

• Service economy does not contribute to GDP

• Because services are intangible and difficult to quantify

What was a surprising effect of the COVID-19 pandemic on productivity?

• Productivity surged due to layoffs of low productivity workers

• Productivity decreased due to remote work

• There was no significant change in productivity

• Productivity decreased because of increased sick leaves

What role does artificial intelligence (AI) play in future productivity growth?

• AI has no potential to impact productivity

• AI decreases productivity by replacing human jobs

• AI's impact on productivity is yet to be seen in the data

• AI has already maximized productivity growth

What is a potential benefit of strong labor productivity?

• Higher unemployment rates

• Decreased economic growth

• Lower living standards

• Increased living standards