Other things equal, which of the following would increase labor productivity the most?

Question

Quizplus · Accepted Answer

The increase in the stock of real capital (such as new and improved machinery, equipment, and technology) will have a greater impact on increasing labor productivity than simply increasing the inputs of labor. This is because with more and better capital, workers can produce more output per hour of work. The other options may still result in increased productivity, but not to the same extent as when the stock of real capital exceeds the increase in inputs of labor.

Other Things Equal, Which of the Following Would Increase Labor