A study conducted by the Moscow-based management consulting firm Strategy Partners found that average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productivity to be nearly size times higher than Russian labor productivity?

A study conducted by the Moscow-based management consulting firm Strategy Partners found that average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productivity to be nearly size times higher than Russian labor productivity?

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A study conducted by the Moscow-based management consulting firm Strategy Partners found that average labor productivity in Russia is only 17 percent of labor productivity in the United States.
What factors would cause U.S. labor productivity to be nearly size times higher than Russian labor productivity?



A. The size of the civilian labor force is larger in the U.S.
B. The size of the civilian labor force is larger in Russia, causing diminishing returns to set in
C. The U.S. has more capital available per worker and higher levels of technology
D. Russia overall has a smaller capital stock




Answer: C


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