Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States? a. Technology and abundance of workers b. Innovation and technology C. Reduced competition and outsourcing d. Innovation and skilled workers

Question

Business

Gavin Reid

1 May, 02:15

Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States? a. Technology and abundance of workers b. Innovation and technology C. Reduced competition and outsourcing d. Innovation and skilled workers

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Answers (1)

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Yandel Becker · Answer 1

B) Innovation and technology

Explanation:

Technology is part of the capital factor of production, and it is the most important way of increasing the quality of capital. An increase in the quality of capital means that given a same amount of capital (e. g one machine), labor will be able to produce a larger output (an increase in productivity). Technological improvements are usually achieved through research and development.

Technological improvements also affect the land factor since they can reduce the use of natural resources and wastes, although the largest impact is usually made on labor productivity.