a. What is labour productivity and how does it relate to long-run economic growth?

a. What is labour productivity and how does it relate to long-run economic growth?

b. Assuming that the legal system is already efficient at enforcing property rights and contracts what two factors can increase labour productivity?

c. Based on your answers to questions a. and b. in the medium to long term would it be efficient for the government to increase expenditure on the university sector (assuming the money will be spent on teaching and research)?