Labour productivity increases if i.human capital decreases.
Ii)technology advances.
Iii)he quality of education decreases.

Question

Quizplus · Accepted Answer

Labour productivity increases if technology advances. This is because new technology can increase the efficiency of production processes and reduce the time required to produce a unit of output. Human capital and the quality of education are positively correlated with productivity, so if they decrease, productivity is likely to decrease as well. Therefore, we can eliminate A) and D). Option C) is clearly incorrect as it suggests that lower education will lead to increased productivity. This leaves us with option B), which correctly identifies technology as a driver of productivity growth.

Labour Productivity Increases If I.human Capital Decreases