Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then
A)productivity and output both rise.
B)productivity rises and output falls.
C)productivity falls and output rises.
D)productivity and output fall.

Question

Quizplus · Accepted Answer

If restrictions on working hours reduce the total number of hours worked, then output would fall because there are fewer labor hours available to produce goods and services. However, productivity may rise as workers are incentivized to use their time more efficiently and may be less likely to experience burnout or fatigue from overwork. Therefore, productivity may increase even though output falls.

Suppose a Country Imposes New Restrictions on How Many Hours