If average labor productivity decreases while population and the number of employed workers remain constant, then output per person:
A)increases.
B)decreases.
C)remains constant.
D)may increase or decrease.

Question

Quizplus · Accepted Answer

If the population and the number of employed workers remain constant, while each worker becomes less productive, then total output must decrease as each worker now contributes less output. If less output is to be distributed on the same population, than output per person must also decrease.

If Average Labor Productivity Decreases While Population and the Number