As firms gradually acquire ever more technology, machinery and equipment, workers' productivity gradually ________, and workers wages gradually ________.
A)rises, decrease
B)diminishes, decrease
C)diminishes, increase
D)rises, increase

Question

Quizplus · Accepted Answer

As firms acquire more technology, machinery, and equipment, workers' productivity increases because they can produce more efficiently. As productivity increases, workers' wages also tend to increase because they are able to contribute more value to the firm.

As Firms Gradually Acquire Ever More Technology, Machinery and Equipment