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Author Question: Changing how production is organized cannot result in changes in productivity. Indicate whether ... (Read 185 times)

Anajune7

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on: Jul 1, 2018
Changing how production is organized cannot result in changes in productivity.
 
  Indicate whether the statement is true or false

Question 2

Non-neutral technological change is more valuable to labor than neutral technological change.
 
  Indicate whether the statement is true or false


macagn

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Reply #1 on: Jul 1, 2018
Answer to Question 1

False. Henry Ford's assembly line is an example of how changes in the organization of production increased productivity.

Answer to Question 2

True . Neutral technological change leaves the proportion in which inputs are used (for example, the labor/capital ratio) unchanged, but non-neutral technological changes are innovations that alter the labor/capital ratio. The labor/capital ratio used to produce a given level of output falls after non-neutral technological change. Therefore, non-neutral technological change is more valuable to labor than neutral technological change.


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