To increase productivity,
A)The labor force must grow faster than capital spending increases.
B)Capital spending must be greater than zero.
C)Capital spending must increase faster than the labor force expands.
D)Capital spending must increase at the same pace as the labor force expands.

Question

Quizplus · Accepted Answer

In order to increase productivity, capital spending must increase at a faster pace than the labor force expands. This means that companies must invest in new technologies and equipment to make their workers more efficient and effective in their roles. Simply adding more workers without improving the technology and equipment they use will not necessarily increase productivity. In fact, it may lead to a decrease in productivity due to overcrowding and increased managerial responsibilities. Therefore, choice C is the best answer.

To Increase Productivity