Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
By reducing the overall labor force
B
By increasing the output per worker, leading to higher GDP
C
By lowering the costs of production without affecting output
D
By decreasing technological advancements in the workforce
Understanding the Answer
Let's break down why this is correct
Answer
Improving labor productivity means that workers can produce more goods and services in the same amount of time. When workers are more productive, businesses can make more products without needing to hire extra employees, which reduces costs and increases profits. This extra profit can be reinvested into the business, leading to more innovation, better technology, and even more jobs. For example, if a factory improves its machinery, workers can produce twice as many toys in a day, leading to higher sales and economic growth. Overall, when labor productivity rises, it helps the entire economy grow by creating more wealth and opportunities for everyone.
Detailed Explanation
When workers produce more in the same amount of time, the country makes more goods and services. Other options are incorrect because Some might think that having fewer workers is better for productivity; It's a common mistake to think cutting costs alone helps the economy.
Key Concepts
economic efficiency
economic growth.
Topic
Labor Productivity and Decision-Making
Difficulty
medium level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.