Suppose that a new invention increases the marginal productivity of labor, shifting labor demand to the right. Such an invention would be an example of
A)labor-saving technology.
B)labor-augmenting technology.
C)revenue technology.
D)supply-shifting technology.

Question

Quizplus · Accepted Answer

Labor-augmenting technology is a type of technology that increases the marginal productivity of labor, which means it increases the output that can be produced by each unit of labor. This results in an increase in the demand for labor, which shifts the labor demand curve to the right. Therefore, a new invention that increases the marginal productivity of labor is an example of labor-augmenting technology.

Suppose That a New Invention Increases the Marginal Productivity of Labor