An important source of increasing productivity is
A) an increase in the ratio of capital to labor.
B) an increase in the ratio of labor to capital.
C) a decrease in the ratio of capital to labor.
D) faster growth in the labor force than in the capital stock.

Question

Quizplus · Accepted Answer

An increase in the ratio of capital to labor leads to a more efficient use of labor, which increases productivity. This can be achieved through investments in technology, machinery, and equipment that enable workers to produce more goods or services in less time.

An Important Source of Increasing Productivity Is