Which of the following changes would increase labor productivity?

• A. Decreasing the amount of capital available to each worker
• B. Introducing new technology that allows workers to produce more output per hour
• C. Reducing the amount of training provided to workers
• D. Increasing the number of workers without changing equipment or processes

Answer: (B)

Verified step by step guidance

1. Understand that labor productivity is defined as the amount of output produced per unit of labor input, often measured as output per hour worked.
2. Recognize that labor productivity can increase if workers are able to produce more output in the same amount of time, which can happen through better technology, improved skills, or more efficient processes.
3. Analyze each option: Decreasing capital per worker typically reduces productivity because workers have fewer tools or machines to assist them.
4. Reducing training usually lowers productivity since workers may not perform tasks as efficiently or effectively without proper skills.
5. Increasing the number of workers without changing equipment or processes generally does not increase productivity per worker; it may even decrease it if resources become more thinly spread.