An increase in the productivity of labor over time will
A) decrease the value of time.
B) increase the value of time.
C) decrease the demand for labor-saving devices.
D) decrease the demand for consumer goods and services.

Question

Quizplus · Accepted Answer

An increase in productivity of labor means that more output can be produced in the same amount of time. This leads to increased efficiency, which increases the value of time as workers are able to produce more goods in a shorter amount of time. This also leads to increased demand for labor-saving devices as businesses seek ways to further increase productivity. It does not necessarily have any effect on the demand for consumer goods and services. Choice A is incorrect because an increase in productivity means that time becomes more valuable, not less. Choice C is incorrect as an increase in productivity would require more advanced forms of technology and equipment, not less. Choice D is also incorrect as productivity and demand for consumer goods and services are not necessarily correlated.

An Increase in the Productivity of Labor Over Time Will