Which of the following will contribute to higher wage rates for labor?

Question

Quizplus · Accepted Answer

All of the above factors contribute to higher wage rates for labor. 
- Increased productivity means that workers are producing more output per hour worked, which increases the value of their labor and can lead to higher wages. 
- Increases in capital formation (e.g. new technology or equipment) can also lead to increased productivity, which again can lead to higher wages. 
- A decrease in the supply of labor (e.g. due to demographic trends or changes in immigration policy) can lead to labor shortages, which can drive up wages as employers compete for workers. 
- Finally, increased marginal productivity of labor (i.e. when each additional hour worked by a worker produces more output) can also lead to higher wage rates as employers realize the value of having more productive employees.

Which of the Following Will Contribute to Higher Wage Rates