Holding other factors constant, if computers allow factory workers to manufacture more products per hour, then the real wages of factory workers will ________ and employment of factory workers will ________.
A)increase; increase
B)increase; decrease
C)decrease; not change
D)decrease; increase

Question

Quizplus · Accepted Answer

If workers become more productive, then producers of computers will be more inclined to hire workers so the demand for labor shifts right. Wages and employment will increase.

Holding Other Factors Constant, If Computers Allow Factory Workers to Manufacture