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Countries that have had higher output growth per person have typically done so without higher productivity growth.

a)True
b)False

1 Answer

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Final answer:

The statement is false, as higher output growth per person usually correlates with higher productivity growth. Productivity is important for increasing GDP and improving living standards, especially in countries with lower per capita GDP.

Step-by-step explanation:

The statement that countries that have had higher output growth per person have typically done so without higher productivity growth is false. Growth in output per person, generally referred to as GDP per capita, is significantly influenced by productivity improvements. Productivity growth is the result of advancements in human and physical capital, technology, and their interactions within a market-driven economy. Countries that experience higher productivity tend to have greater volumes of goods and services which contributes to higher GDP, and consequently, when coupled with lower population growth rates, leads to a higher GDP per capita.

It is important to consider that in the pursuit of economic growth, some countries may prioritize different aspects such as economic output, including necessities like nutrition, shelter, health, and education. Whereas countries with higher income levels might focus more on areas like environmental protection. Nonetheless, the fundamental driver of GDP per capita growth is often linked to productivity growth, enhancing the standard of living.

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