Labor productivity is higher in DCs such as Japan and Germany than LDCs due to ?

Correct answer: C. Both a and b are correct

  • A. high formal education and training
  • B. better health and physical condition of the labor force
  • C. Both a and b are correct
  • D. None of the above is correct

Explanation

Higher formal education and training improve workers’ skills, while better health raises their physical and mental capacity to work. Both factors therefore help explain higher productivity in developed countries.

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