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

question 578

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) only
• D)(ii) and (iv) only

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Definitions:

Economic Potential

The capacity of an individual, company, or country to generate goods or services that have value and can contribute to wealth.

Microsystem

The closest layer of the ecological systems theory, involving the immediate environment in which a person directly interacts, such as family or school.

Social Class

A division of a society based on social and economic status, affecting opportunities, lifestyles, and attitudes.