Which of the following might reduce labor productivity?
A)Rising ratios of labor to capital.
B)Rising literacy.
C)Rising human capital.

Question

Quizplus · Accepted Answer

Rising ratios of labor to capital mean that there are more workers relative to the amount of technology and equipment available, which can reduce labor productivity. This is because workers may have to spend more time waiting for equipment or coordinating with each other, leading to less efficient use of their time. Rising literacy and human capital are likely to increase labor productivity, not decrease it.

Which of the Following Might Reduce Labor Productivity