The growth of labor productivity is caused by the growth of capital relative to labor and by technological and efficiency improvements.

Question

Quizplus · Accepted Answer

Labor productivity is defined as the amount of goods and services produced by one unit of labor in a given amount of time. The growth of labor productivity can be attributed to several factors, including the growth of capital relative to labor and the introduction of new technologies and efficiency improvements. The more capital a worker has to work with, the more they can produce in a given amount of time. Similarly, the adoption of new technologies and efficiency improvements can help workers produce more goods and services in less time, which contributes to higher labor productivity.

The Growth of Labor Productivity Is Caused by the Growth