Question

Which is most likely to increase when producers make technological improvements?

Responses

wages

wages

consumption

consumption

productivity

productivity

inventory

Answer 1

The most likely factor to increase when producers make technological improvements is **productivity**. Technological advancements typically lead to more efficient production processes, allowing producers to produce more output with the same amount of input, thus enhancing productivity. While wages and consumption may also eventually benefit from increased productivity, the immediate effect of technological improvements is seen in productivity levels.