1. Which of the following factors do not contribute to a slowdown in productivity? (LO9-6) a) Tighter environmental regulations. b) Low levels of savings and investments. c) Lower oil prices. d) Lack of innovation.
2. One country (call it A) can make 1,000 shirts with 50 hours of labor. A second country (call it C) can make 1,000 shirts with 75 hours of labor. a) Calculate productivity for Countries A and C. Which one is higher? b) Suppose workers in Country A get paid $30 per hour and workers in Country C get paid $10 per hour. In which country is it more expensive to make a shirt (assuming that all other costs are the same between the two countries)?