Question

The most effective way to increase the productivity of labor would be to (LO4) a) increase capital b) increase labor c) lower capital d) shift workers from white-collar work to bluecollar work

Short answer

The most effective way to increase the productivity of labor would be to a) increase capital, as providing workers with better equipment, machinery, or technology can directly increase the output per worker, leading to increased labor productivity.

Step-by-step solution

(Step 1: Define productivity of labor)

(To answer this question, it is important to first understand what labor productivity means; it refers to the output produced per worker or per hour worked. An increase in labor productivity means that a worker can produce more output in the same amount of time.)

(Step 2: Analyze option a - increase capital)

(Increasing capital refers to investing in more equipment, machinery, or technology that can help workers perform their tasks more efficiently. If workers have better tools, they can likely produce more in the same amount of time, which would lead to an increase in labor productivity.)

(Step 3: Analyze option b - increase labor)

(Increasing labor generally refers to hiring more workers. It does not necessarily mean that each individual worker will be more productive. It might increase the total output of a company or production process, but it doesn't directly increase labor productivity, as the output per worker may remain the same.)

(Step 4: Analyze option c - lower capital)

(Lowering capital means reducing the amount of equipment, machinery, or technology available to workers. This is likely to hinder their ability to perform tasks efficiently and can actually lead to a decrease in labor productivity, making it an unideal option.)

(Step 5: Analyze option d - shift workers from white-collar work to blue-collar work)

(Shifting workers from white-collar work to blue-collar work implies moving workers from managerial or professional roles to more manual labor-intensive roles. This might alter the productivity of individual workers but doesn't directly address the issue of increasing overall labor productivity. The impact of this shift on productivity would depend on the specific circumstances of the roles and company involved.)

(Step 6: Choose the most effective way to increase labor productivity)

(Comparing all the options, it becomes clear that option a (increase capital) is the most effective way to increase the productivity of labor. Providing workers with better equipment, machinery, or technology can directly increase the output per worker, leading to increased labor productivity.) Answer: The most effective way to increase the productivity of labor would be to a) increase capital.