What two factors are the keys to determining labor productivity?

a. the growth rate of real GDP and the interest rate

b. the average level of education of the workforce and the price level

c. the business cycle and the growth rate of real GDP

d. the level of technology and the quantity of capital per hour worked

Question

Gianni Hodges

Business

20 February, 03:35

What two factors are the keys to determining labor productivity?

a. the growth rate of real GDP and the interest rate

b. the average level of education of the workforce and the price level

c. the business cycle and the growth rate of real GDP

d. the level of technology and the quantity of capital per hour worked

+5

Answers (1)

Know the Answer?

Semaj Ramirez · Answer 1

d. the level of technology and the quantity of capital per hour worked

Explanation:

Labour Productivity denotes the amount of output or income value, by a labour. It depends upon the level of technology & quantity of capital per worker.

Labour productivity is directly related to level of technology & capital per worker. More technology & capital per worker imply high labour productivity; less technology & capital per worker imply less labour productivity. However, the labour productivity increases with level of technology & capital per labour at a diminishing rate. So, labour productivity curve is a upward sloping swamp shaped curve.