The experience of many firms is that decreases in labor costs may:
A) Decrease productivity.
B) Have no significant effect on productivity.
C) First increase, and then decrease productivity.
D) Increase productivity.
E) Restrict productivity improvements.

Question

Quizplus · Accepted Answer

Decreases in labor costs can increase productivity by motivating employees to work harder and more efficiently.

The Experience of Many Firms Is That Decreases in Labor