What factors raise the productivity of labor?
What will be an ideal response?
The productivity of labor is affected by the amount physical capital, the amount of human capital, and the level of technology. An increase in either physical capital or human capital means that more goods and services can be produced with a given amount of labor, so that the productivity of labor increases. Similarly a technological improvement also increases the productivity of labor.
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An example of a consumption tax is
A) an income tax. B) transfer payments. C) the Social Security tax. D) a sales tax.
Use cost benefit analysis to explain the decision whether or not to attend college. Why do some people choose not to attend college?
What will be an ideal response?
The genuine progress indicator provides a measure of social progress that:
A. focuses entirely on economic activity. B. ignores economic activity. C. is explicitly not based on value judgments. D. is explicitly based on value judgments.
An inflationary gap occurs when
A. short-run aggregate supply falls, but other things remain constant. B. the short-run equilibrium level of real GDP is greater than long-run aggregate supply. C. the short-run equilibrium level of real GDP is less than long-run aggregate supply. D. aggregate demand falls, but other things remain constant.