Question

Which of the following would NOT most likely lead to an increase in productivity?

A. capital deepening
B. an increase in human capital
C. an increase in physical capital
D. an increase in the cost of factors of production

Answer 1

One situation that would definitely NOT lead to an increase in productivity is
D. an increase in the cost of factors of production .

An increase in the cost of production would rather lead to a decrease in productivity - it would make the production more difficult.