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Question no. 21205

Given constant technological conditions, productivity gains within a nation should be expected following increases in each factor below except ?

Select your answer for: Given constant technological conditions, productivity gains within a nation should be expected following increases in each factor below except ?
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Answer: A. labor

Explanation

Productivity measures economic output generated per unit of factor input employed. Increasing physical capital, human capital, and natural resources per worker raises productivity. Merely adding raw labor without complementary inputs does not increase output per worker. Economic growth models highlight capital accumulation and technological progress as key drivers. Human capital improvements involve education, training, and skill development for workers. Diminishing marginal returns occur when increasing only one input while holding others constant.

Nations invest heavily in education and infrastructure to boost workforce productivity levels. Simply expanding population size does not automatically guarantee higher per capita income. Sustainable economic development relies on enhancing the quality of productive factors. Physical capital per worker directly enhances the productive capacity of employees. Human capital per worker improves operational efficiency and technological adoption rates. Natural resources per worker provide essential raw materials necessary for industrial production.

Subject
Economics
Category
Economics
Topic
—
Difficulty
medium

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