jaredec18

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Sep 27th, 2019
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  1. 3.
  2. A.
  3. The technological progress has improved the productivity and it has caused the marginal productivity to increase. As a result, their real wages will increase due to the increase in marginal productivity as proposed by the neoclassical approach.
  4.  
  5. B.
  6. Here, the real wages are measured in terms of the agricultural produce or output, produced by the farmers.
  7.  
  8.  
  9. C.
  10. Productivity remains constant. It means that marginal productivity has not changed. As a result, the real wage of the barbers will not change and remained as before.
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