Question

2. Explain how advances in technology affect labor productivity. Do decreasing yields appear? Give an example of the advancement in technology. Use the graph of the productivity curve to show your answer.

Answer 1

human capital is termed as the most valuable asset of any nation. if the human capital is properly managed and provided the right guidance then it may lead to prosperous economic development in the economy.labour productivity is directly concerned with the basic skills,efficiency of workers .

• impact of development and introduction of technology in respect to labour productivity-innovative ideas , introduction of machinery and updated technology impacted the labour productivity positively.per person production has been increased due to the development in the technology.

example of introduction of technology and labour productivity-

in earlier time the human efforts and contribution was a main component in the cultivation of agricultural process.it was taking huge manpower and time.but with the introduction of new technology like tractors , better irrigation facilities the per head production has been increased.this shows that the technology has increased the human productivity.

• decreasing yield-

initially the labour productivity increases at increasing rate and after that is shows a decreasing rate and increases but less than the earlier level as can be observed from the diagram.