All of the following increase labor productivity except ...

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All of the following increase labor productivity except _________.
 
  A. the accumulation of skill and knowledge
  B. an increase in capital per hour of labor
  C. an increase in consumption
  D. the employment of a new technology

Question 2

The issue of fairness in taxes is a very controversial one. Compare and contrast both the ability-to-pay principle with that of the benefits received principle.
 
  What will be an ideal response?

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Answer to Question 1

C An increase in consumption has nothing to do with changing labor productivity.

Answer to Question 2

There is much disagreement over what constitutes a fair tax system. One theory contends that people should bear tax burdens in proportion to the benefits that they receive from government expenditures. This is the benefits-received principle. Another theory contends that people should bear tax burdens in line with their ability to pay. This ability-to-pay principle has dominated U.S. tax policy.

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