Final answer:
To increase productivity, improvements in technology and the betterment of human capital are essential. Technological advancements enhance efficiency and automation, while human capital development results in a skilled workforce capable of adapting to new technologies.
Step-by-step explanation:
The only two ways to increase productivity are through improvements in technology and the betterment of human capital. Enhancements in technology allow for more efficient processes, automation and better management of information, which collectively boost productivity. On the other hand, investing in human capital, which includes education, training, and health, leads to a more skilled, competent, and effective workforce. Workers with higher qualifications and skills not only perform their tasks more efficiently but also adapt more readily to technological advancements, further aiding productivity growth.In the context of economic growth, more productivity means doing more in the same amount of time, thus freeing resources to be used elsewhere and contributing to the overall expansion of businesses. As demonstrated in the example of Canadian versus U.S. workers making loaves of bread, being able to produce more per hour is a direct indicator of higher productivity. This concept is central in understanding the performance of economies and businesses over time.