An Increase in Technology That Enhances Labor Productivity Will Likely

question 1

Multiple Choice

An increase in technology that enhances labor productivity will likely result in:

• A) a decrease in labor employment and an increase in the wage rate.
• B) an increase in labor employment and an increase in the wage rate.
• C) a decrease in labor employment and a decrease in the wage rate.
• D) an increase in labor employment and a decrease in the wage rate.
• E) employers using less labor and more capital while the wage effect is unknown.