Which of the following is likely to cause a decrease in labor productivity?
A) an increase in student achievement scores
B) a service sector that is growing slower than the growth rate of GDP
C) an increased spending on research and development
D) a decrease in capital formation
E) a low federal budget deficit

Question

Quizplus · Accepted Answer

A decrease in capital formation, such as a decrease in investment in machinery or technology, would likely result in a decrease in labor productivity as workers would have fewer tools and resources to work with. The other options would not necessarily have a direct impact on labor productivity.

Which of the Following Is Likely to Cause a Decrease