Which of the following will increase the wage rate?
A) New technology increases the marginal product of labour.
B) The price of the output produced by the workers increases.
C) An increase in labour supply
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

Both A and B are correct because when new technology increases the marginal product of labor, workers become more productive, which can lead to higher wages. Similarly, if the price of the output produced by workers increases, this can also lead to higher wages as the value of what the workers are producing has gone up.

Which of the Following Will Increase the Wage Rate