Question

What two factors are the keys to determining labor​ productivity?

a. the growth rate of real GDP and the interest rate
b. the average level of education of the workforce and the price level
c. the business cycle and the growth rate of real GDP
d. the level of technology and the quantity of capital per hour worked

Answer 1

The two key factors determining labor productivity are the level of technology and the quantity of capital per hour worked.

Step-by-step explanation:

Labor productivity is determined by two key factors: the level of technology and the quantity of capital per hour worked.

1. Level of technology: Technological advancements improve labor productivity by enabling workers to produce more output with the same amount of input. For example, automation and digitalization can streamline production processes, reducing the time and effort required to produce goods and services.
2. Quantity of capital per hour worked: Capital refers to the machinery, equipment, and infrastructure used in the production process. When workers have access to more capital per hour worked, their productivity increases. For instance, having more advanced machines or tools can enhance worker efficiency and output.

Both factors play a crucial role in determining an economy's overall productivity and its potential for long-term economic growth.

Answer 2

d. the level of technology and the quantity of capital per hour worked

Step-by-step explanation:

Labour Productivity denotes the amount of output or income value, by a labour. It depends upon the level of technology & quantity of capital per worker.

Labour productivity is directly related to level of technology & capital per worker. More technology & capital per worker imply high labour productivity; less technology & capital per worker imply less labour productivity. However, the labour productivity increases with level of technology & capital per labour at a diminishing rate. So, labour productivity curve is a upward sloping swamp shaped curve.