________ is likely to result in an increase in the total efficiency units of labor in the economy.
A) An increase in the unemployment rate in an economy
B) A decrease in the labor force participation rate in an economy
C) An increase in the productivity of each worker in an economy
D) A decrease in the capital-labor ratio in an economy

Question

Quizplus · Accepted Answer

An increase in the productivity of each worker in an economy will result in a higher output per unit of labor input, which will lead to an increase in the total efficiency units of labor in the economy. This means that the same amount of labor will produce a greater amount of output, indicating higher efficiency. A decrease in the capital-labor ratio (Choice D) would mean less capital per worker and would likely decrease efficiency. An increase in the unemployment rate (Choice A) and a decrease in the labor force participation rate (Choice B) may decrease the level of total efficiency units of labor in the economy, as fewer people would be contributing to the output.

________ Is Likely to Result in an Increase in the Total