An economy can improve its standard of living by

Question

Quizplus · Accepted Answer

Increasing the amount of capital available per hour worked will improve productivity since workers can work with better and more efficient equipment. This will lead to an increase in the standard of living. Organizing production so that the quantity of goods produced per hour will decrease (A) and reducing the amount of human capital workers have (B) will have negative effects on productivity. Increasing the minimum wage (D) may lead to an increase in production costs, which could result in increased prices for goods and services, and a potential decrease in demand for them, which might lower standards of living.

An Economy Can Improve Its Standard of Living by