An increase in output per unit of labour may be attributable to

Question

Quizplus · Accepted Answer

An increase in output per unit of labour is typically a result of economic growth, which refers to an increase in the production of goods and services over time. This can be due to factors such as technological advancements, increased investment, and improved education and skills of the labour force. A movement along the production possibilities curve would indicate a change in the allocation of resources and not necessarily an increase in output per unit of labour. Lower wages may lead to a decrease in production costs, but it does not necessarily translate to an increase in output per unit of labour.

An Increase in Output Per Unit of Labour May Be