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Labor Productivity and Decision-Making
hard

How does technology adoption influence labor productivity in the context of economic growth and efficiency improvement strategies?

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Choose the Best Answer

A

Technology adoption leads to reduced labor costs and increased productivity, directly contributing to economic growth.

B

Technology adoption has no significant effect on labor productivity or economic growth.

C

Efficiency improvement strategies are irrelevant to economic growth when technology is adopted.

D

Technology adoption only benefits large firms and does not impact overall labor productivity or economic growth.

Understanding the Answer

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Answer

Technology adoption plays a crucial role in improving labor productivity, which is the amount of goods and services produced by workers in a given time. When businesses adopt new technologies, they can automate tasks, streamline processes, and reduce the time needed to complete work. For example, a factory that uses advanced machinery can produce more products quickly compared to one that relies on manual labor. This increased efficiency not only boosts the output but also allows workers to focus on higher-level tasks, leading to innovation and growth. Ultimately, as productivity rises, the economy benefits through increased production, higher wages, and improved living standards.

Detailed Explanation

When companies use new technology, they can do more work with the same number of workers. Other options are incorrect because Some people think that technology doesn't change how much work gets done; This idea suggests that improving how we work doesn't matter when we use technology.

Key Concepts

technology adoption
efficiency improvement strategies
economic growth.
Topic

Labor Productivity and Decision-Making

Difficulty

hard level question

Cognitive Level

understand

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