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The fundamental precondition for labor productivity growth is the incentive system created by all of the following except​ ______.

A.population growth
B.property rights
C.firms and markets
D.money

1 Answer

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Final answer:

Population growth is not created by the incentive system for labor productivity growth, unlike property rights, firms and markets, and money which all provide the necessary frameworks for economic activity and growth.

Step-by-step explanation:

The fundamental precondition for labor productivity growth that is not created by the incentive system is population growth. The factors that do contribute to the incentive system for labor productivity growth include property rights, firms and markets, and money.

These elements provide the legal and economic frameworks needed for individuals and firms to be incentivized to use their property, enter into contracts, and make investments that foster higher productivity and economic growth.

Property rights ensure that individuals have the freedom to use their property as they see fit, which includes the ability to enter into contracts and trade. Firms and markets offer a system where businesses can earn profits, thus motivating them to invest in human and physical capital.

Money serves as a medium for transactions, enabling economic activity. In contrast, population growth is not an incentive system by itself, although it may have indirect effects on labor productivity through market expansion or increased demand.

Therefore, the correct answer is A.population growth.

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