If Q is total real output,K is capital in use,L is labor employed,and the productivity of labor grows,other things constant,then
A)K/L rises
B)L/K rises
C)Q/L rises
D)Q/K falls
E)(Q + K)/L falls

Question

Quizplus · Accepted Answer

If the productivity of labor grows, output per unit of labor increases. This means that output will increase for each unit of labor employed. Therefore, Q/L will rise, as productivity per worker will increase. The other options are not affected by changes in labor productivity.

If Q Is Total Real Output,K Is Capital in Use,L