A rise in the average productivity of labor
A)always reflects technical progress.
B)reflects technical progress if other input usage hasn't changed.
C)reflects technical progress only if labor input hasn't changed.
D)reflects technical progress only if the quantity of output is increased.

Question

Quizplus · Accepted Answer

A rise in the average productivity of labor can be due to various factors, one of them being technical progress. However, it can also be due to changes in input usage, such as more capital or better training, which would not necessarily reflect technical progress. Therefore, option B is the best answer as it implies that the rise in productivity is likely due to technical progress, as long as other input usage hasn't changed.

A Rise in the Average Productivity of Labor