Question

What happens to productivity in a welfare state when the producers of goods and services are taxed more and more to pay for the welfare state?
Select one:
a. productivity plunges
b. productivity rises
c. productivity remains the same
d. productivity is unpredictable

Answer 1

The correct answer is letter B

Productivity is the relationship between the amount of what is produced in relation to the inputs used or the amount of time invested in the process.

It is the result of what is productive, that is, what is produced, what is profitable. It is the relationship between the means, resources used and the final production. It is the result of the ability to produce, to generate a product, the result of work, associated with the technique and the capital employed.