QQuestionEconomics
QuestionEconomics
"Improvements in the productivity of labor will tend to:
Group of answer choices
decrease wages.
decrease the supply of labor.
increase wages.
increase the supply of labor."
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Answer
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Step 1: Analyze the relationship between labor productivity and wages.
Improvements in labor productivity generally lead to an increase in the output produced by each worker. This increased output can have a positive impact on wages, as employers may be willing to pay workers more for their higher productivity.
Step 2: Understand the concept of supply and demand.
In labor markets, the supply of labor is typically influenced by wages. When wages increase, the incentive for workers to supply their labor also increases, leading to a larger supply of labor. Conversely, when wages decrease, the supply of labor tends to decrease as well.
Final Answer
Improvements in the productivity of labor will tend to increase wages and increase the supply of labor.
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