Question

In general, the production and use of capital ________ the productivity of labor and normally ________ wages. A) enhances; drives up B) enhances; drives down C) diminishes; drives down D) has no effect on; has no effect on

Answer 1

Answer: B. enhances; drives down

Step-by-step explanation:

Capital are the resources that are used by an organization which can bring about an increase in the production of such organization. Organizations undertake capital investment in order to enhance productivity and also increase revenue.

In such cases, this helps in driving down wages. This is because when an organization uses more of capital in its productive activities, less of labor is required which can help drive down wages.