Labour productivity grows as

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Quizplus · Accepted Answer

Physical capital refers to the tools, equipment, and other tangible assets used in production. Human capital refers to the skills, knowledge, and experience of workers. Technology refers to the use of new and improved methods of production. As these factors improve, they contribute to an increase in labour productivity. Depreciation refers to the wear and tear of physical capital over time, and therefore, does not contribute to an increase in labour productivity. Population growth and longer working hours may increase the quantity of labour, but not necessarily its productivity. Consumption expenditure is a measure of spending by consumers and does not directly relate to labour productivity.

Labour Productivity Grows as