The productivity and real wages of workers in industrially advanced economies have risen historically partly because
A) workers have acquired less education and training over time.
B) workers have been able to use larger quantities of capital equipment.
C) over time, the capital equipment used by workers has deteriorated in quality.
D) the supply of labor has increased.

Question

Quizplus · Accepted Answer

The use of larger quantities of capital equipment has increased the productivity of workers over time, leading to the increase in real wages. This is known as capital deepening, and it is a key driver of economic growth in industrialized economies. Choices A, C, and D do not accurately reflect the historical trends in productivity and real wages.

The Productivity and Real Wages of Workers in Industrially Advanced