Final answer:
The statement assuming ratio analysis predicts an increase in productivity over time is false. Ratio analysis focuses on financial health rather than productivity trends, and while technology can affect productivity growth, it is not guaranteed to always increase.
Step-by-step explanation:
The statement 'Like trend analysis, ratio analysis assumes that productivity will increase over time' is False. Ratio analysis is a method used in financial studies to assess the financial health and performance of a company by comparing relative figures from the financial statements. It does not inherently assume an increase in productivity over time. In fact, productivity can be influenced by various factors, such as technology or operational efficiencies, and can fluctuate due to economic or industry-specific conditions.
Regarding productivity, it can be measured using GDP (output) per worker (input), and although new advances in technology can lead to growth in productivity, it's not guaranteed to increase at a consistent or accelerating rate. Additionally, labor productivity and economic growth are associated with increased wages typically, but there are situations, such as when labor markets are not fully competitive or when there are significant technological unemployment issues, where this association may not hold true.