Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?
A) Capital productivity has declined.
B) Unemployment has increased.
C) The rate of economic growth has increased.
D) Entrepreneurs no longer have an incentive to invest in information technology.

Question

Quizplus · Accepted Answer

Improvements in information technology have led to an increase in labor productivity, which has resulted in a higher rate of economic growth. This growth can be attributed to the fact that businesses can produce more goods and services with the same amount of resources, leading to increases in output and revenue. Capital productivity and unemployment rates may have been affected by this change, but they are not necessarily direct results of it. Additionally, entrepreneurs still have incentives to invest in information technology, as it can lead to cost savings and efficiency gains in their businesses.

Improvements in Information Technology Over the Past Decade Have Enhanced