In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker a. remained unchanged between 1998 and 2008. b. decreased by 1.7 percent between 1998 and 2008. c. increased by 6.25 percent between 1998 and 2008. d. increased by 4.75 percent between 1998 and 2008

Question 22

Suppose an economist advises a city’s mayor to begin charging drivers a fee to drive on a busy highway during congested times. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario?

a.
This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons.

b.
This is a common occurrence. The policymaker usually disregards an economist’s advice because they do not believe it is the most efficient policy.

c.
This is an unlikely occurrence. Most of the time, policymakers follow the advice of economists and institute the most efficient policies.

d.
This would never happen. Policymakers always follow the advice of economists.