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Which of the following inputs has the greatest potential to increase productivity?

a. labor
b. globalization
c. management
d. capital
e. none of the above

1 Answer

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Final answer:

Capital has the greatest potential to increase productivity as it involves the investment in technology and infrastructure, making production more efficient and enhancing output.

Step-by-step explanation:

Among the choices given, capital has the greatest potential to increase productivity. In economics, capital refers not just to financial assets, but also to the machinery, tools, and equipment that are used to produce goods and services. Investing in capital, particularly in technology and infrastructure, can significantly boost an economy's productivity by making production more efficient and allowing for greater output with the same amount of labor and resources. On the other hand, while labor, management, and globalization can each contribute to productivity, they may not have as direct and potent an impact as the introduction or enhancement of capital does. Human capital is also crucial as a well-educated and skilled workforce can lead to innovation and a more efficient use of physical capital.

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