Question

Please rank the following based on their importance in growth of productivity (output per worker). If items have roughly the same importance, you may place them in any order amongst themselves. Items that do not affect productivity growth should be left unplaced. From most important factor in Growth to least important factor in Growth.

(1) labor,
(2) technology
(3) human capital
(4) physical capital
(5) convergence.

Answer 1

Answer: technology, human capital, physical capital

       

Explanation: In simple words, growth refers to a situation when there is an increase in the output of an economy from one year the other. The growth depends on the factor of productions in the following manner.

1. technology

2. human capital

3. physical capital

Labor and human capital depicts the same thing while convergence is a theory and not a factor affecting growth.