Labor productivity can be increased if
A) people spend less time developing skills before entering the workforce.
B) the government mandates it.
C) there is an increase in capital goods.
D) the standard of living declines.

Question

Quizplus · Accepted Answer

An increase in capital goods can lead to an increase in labor productivity as it provides workers with better equipment, tools, and technology to work with, making their work easier, faster, and more efficient. Option A is incorrect because developing skills is crucial for labor productivity. Option B is incorrect because productivity cannot be mandated by the government alone. Option D is incorrect because lower standards of living can lead to a decrease in productivity due to poor working and living conditions.

Labor Productivity Can Be Increased If