If new production technology is put into practice that allows workers to increase their productivity and process more chickens per hour, then the real wage of unskilled workers in poultry processing plants is predicted to _____ and the employment of unskilled workers in poultry processing plants is predicted to _____.

Question

Quizplus · Accepted Answer

If each worker is more productive and thereby increases their value to their employer, then chicken producers will be more inclined to hire additional workers and there will be more demand for poultry workers (demand shifts right). As a result, wages and employment will increase.

If New Production Technology Is Put into Practice That Allows