Labor-Augmenting Technology Causes Which of the Following? (I) the Marginal Productivity

question 167

Multiple Choice

Labor-augmenting technology causes which of the following? (i) The marginal productivity of labor increases.
(ii) The marginal productivity of labor decreases.
(iii) Labor demand shifts to the right.
(iv) Labor demand shifts to the left.

• A)(i) only
• B)(ii) only
• C)(i) and (iii)
• D)(ii) and (iv)

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained rather than being paid out as dividends to shareholders, often reinvested in the business or used to pay off debt.

Notes Payable

A financial liability representing a written promise to pay a specific sum of money on a specified future date.

Accounts Payable

A liability account that tracks money owed by a business to suppliers or creditors for goods and services received.