Labour productivity grows as

Question

Quizplus · Accepted Answer

Labour productivity is directly affected by the growth of physical capital and human capital. As the physical capital (e.g. machinery, equipment, infrastructure) grows, it enables workers to work more efficiently, resulting in increased productivity. Similarly, as the level of education, training, and skills of workers (i.e. human capital) grows, they become more productive in their work. Both of these factors contribute to the overall growth of labour productivity. Thus, option E - Both C and D are correct - is the best choice.

Labour Productivity Grows as