Question

In general, the production and use of capital ________ the productivity of labor and normally ________ wages.

Answer 1

Answer:

In general, the production and use of capital ENHANCES the productivity of labor and normally DRIVES UP wages.

Explanation:

capital refers to tools, machinery or equipment used in the production of goods or services. They all help to increase the productivity of workers. As the productivity increases, so do salaries (generally speaking). For example, a person that paints using a common brush will paint 10 yards per hour, while someone that uses a painting machine will paint 50 yards per hour. Since using a painting machine yields a much higher return, but also requires additional knowledge, the worker is paid a higher wage.