For given inputs of labor and capital, if technology is more primitive, labor productivity will be
A)higher.
B)lower.
C)unchanged.
D)characterized by increasing returns to scale.

Question

Quizplus · Accepted Answer

If technology is more primitive, it means that there are fewer tools, machinery, and equipment available to aid labor in the production process. This implies that the productivity of labor (output per unit of labor) will be lower than would be possible with better technology. Therefore, the correct choice is B. Option A is incorrect because primitive technology does not help labor to be more productive. Option C is incorrect because productivity is affected by technology. Option D is incorrect because increasing returns to scale are not directly related to technological progress.

For Given Inputs of Labor and Capital, If Technology Is