If the labour force is growing at a 3 percent rate and the efficiency of a unit of labour is growing at a 2 percent rate,then the number of effective workers is growing at a rate of:

Question

Quizplus · Accepted Answer

The number of effective workers can be calculated by multiplying the labour force with the efficiency of labour. So, if the labour force is growing at a rate of 3 percent per year and the efficiency of a unit of labour is growing at a rate of 2 percent per year, then the number of effective workers will grow at a rate of (3% + 2%) = 5% per year. Therefore, the correct answer is option C).

If the Labour Force Is Growing at a 3 Percent