For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?
Correct answer: A. labor
- A. labor
- B. physical capital/worker
- C. human capital/worker
- D. natural resources/worker
Explanation
With technology fixed, adding labor alone does not necessarily raise productivity, which is output per worker. More physical capital, human capital or natural resources per worker can raise the productive capacity of each worker.
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