Question

#21.1

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n)

• technological advance.

• network effects.

• simultaneous consumption.

• improved resource allocation.

#25.1

Which of the following is best considered a demand factor in economic growth?

• the full employment of resources

• the stock of capital goods

• the quantity of human resources

• the quality of natural resources

Answer 1

21.1 option D.

• A jobs productivity is said to increase or improve, if the employers are using methods that can improve resource allocation.
• Apart from other resources like land, machineries capital etc, human labour is also an important resource.
• Therefore movement of workers from higher productivity jobs to lower productivity jobs means that there is improved resource allocation.

25.1 option A.

• When a firm is looking forward to full employ it's resources to Increase productivity, demand in the Economy increases which leads to an economic growth.
• This is because when more labour is employed demand for more labour increases. Similarly for land and capital, when they are required their demand increases.
• Thus full Employment of resources is considered as a demand factor in economic growth.