What factors raise the productivity of labor? What will be an ...

[Beheh]

What factors raise the productivity of labor?
 
  What will be an ideal response?

Question 2

Emma owns a firm that produces umbrellas. Currently, Emma produces 2,500 umbrellas a day. Emma cannot produce more umbrellas in a day unless she purchases another machine or else hires more workers. Emma is ________ efficient.
 
  A) cost
  B) technologically
  C) economically
  D) capital and labor

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Answer to Question 1

The productivity of labor is affected by the amount physical capital, the amount of human capital, and the level of technology. An increase in either physical capital or human capital means that more goods and services can be produced with a given amount of labor, so that the productivity of labor increases. Similarly a technological improvement also increases the productivity of labor.

Answer to Question 2

B

[Beheh]

TYSM

[amcvicar]

Excellent