The quality of labour inputs increases with increases in the labour force participation rate.

Question

Quizplus · Accepted Answer

The quality of labor inputs is determined by factors such as education, skills, and experience, not just by the number of people participating in the labor force. An increase in the labor force participation rate could include individuals with varying levels of skill and productivity, which does not necessarily improve the overall quality of labor inputs.

The Quality of Labour Inputs Increases with Increases in the Labour