David works 7 hours and produces 5 units per hour. Bessy works 6 hours and produ

ID: 1102928 • Letter: D

Question

David works 7 hours and produces 5 units per hour. Bessy works 6 hours and produces 6 units per hour.

Bessy's productivity is greater than David’s but her output is less.

Which of the following would be counted as physical capital by an economist?

Which of the following would have an impact on the productivity of labor?

All of the above would have an impact on the productivity of labor.

Which one of the following scenarios would be an example of creative destruction?

a David’s productivity and output are greater than Bessy’s.

1) Option c is correct (Bessy's output = 6x6 = 36 units and productivity is 6 units/hr)

2) Option d is correct (the tools and equipment available to workers on the job are a form of physical capital)

3) Option d is correct (all would have an impact on the productivity of labour)

4) Option d is correct (introduction of google glasses is an example of creative destruction)

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