Which of the following will enhance productivity in an economy?
Answer Details
Technological change is likely to enhance productivity in an economy. This is because it allows for the creation of new and improved methods of production, which in turn can lead to increased efficiency, reduced costs, and higher output. By contrast, the use of obsolete capital is likely to hinder productivity, as outdated machinery and equipment can be inefficient and costly to maintain. Expansion of land under cultivation can increase output, but this is subject to diminishing returns over time, while an increase in the labor force can also boost output but may lead to lower wages and increased competition for jobs.