The productivity of workers will increase in response to
A)Lower wages.
B)An increase in the amount of physical capital per worker.
C)Higher resource costs.
D)An increase in diminishing returns.

Question

Quizplus · Accepted Answer

An increase in the amount of physical capital per worker can lead to increased productivity due to access to better equipment and tools. Lower wages (A) do not necessarily incentivize workers to work harder or be more productive. Higher resource costs (C) could actually decrease productivity as it increases the cost of production. Diminishing returns (D) can lead to decreased productivity as output decreases with each additional unit of input.

The Productivity of Workers Will Increase in Response to