\"If the value of output in an industry increases by 4 percent per year, and wor
ID: 1143456 • Letter: #
Question
"If the value of output in an industry increases by 4 percent per year, and workers receive a wage rate increase of 4 percent per year, then nothing is left to increase the compensation of other factors of production."It is essentially correct. Is is incorrect because it confuses income with output. It is incorrect because wages are less than 100 percent of total factor payments. It is incorrect because the increase in wages actually reduces the real income of all other factors of production. "If the value of output in an industry increases by 4 percent per year, and workers receive a wage rate increase of 4 percent per year, then nothing is left to increase the compensation of other factors of production."
It is essentially correct. Is is incorrect because it confuses income with output. It is incorrect because wages are less than 100 percent of total factor payments. It is incorrect because the increase in wages actually reduces the real income of all other factors of production. It is essentially correct. Is is incorrect because it confuses income with output. It is incorrect because wages are less than 100 percent of total factor payments. It is incorrect because the increase in wages actually reduces the real income of all other factors of production. It is essentially correct.
Explanation / Answer
It is incorrect because wages are less than 100 percent of total factor payments.
other factor(input cost )are also present.
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