The total efficiency units of labor in an economy increases if ________.
A) each worker earns a lower wage
B) each worker becomes more productive
C) the average number of hours worked by each worker decreases
D) the amount of capital available to each worker diminishes

Question

Quizplus · Accepted Answer

The total efficiency units of labor in an economy increase if each worker becomes more productive, as this means that each worker is producing more output with the same amount of input (i.e. labor). The other options (A, C, and D) would not lead to an increase in efficiency units of labor.

The Total Efficiency Units of Labor in an Economy Increases