'Labour productivity' will increase if the ________ increases and ________.

Question

Quizplus · Accepted Answer

Labour productivity is the output produced per hour of work by a worker. This can be increased by either increasing the quantity of capital per hour worked or by introducing technological change. Option A has the correct combination of both these factors, making it the best choice. Options C and D might lead to an increase in the quantity of labour, but as the capital is fixed, it may not lead to an increase in productivity. Option B has the wrong combination of factors as increasing the quantity of labour per unit of capital can lead to lower productivity due to overcrowding and inefficient use of resources.

'Labour Productivity' Will Increase If the ________ Increases and ________

'Labour Productivity' Will Increase If the Increases and