If there is an increase in productivity?
If hourly compensation is about 2/3 of labor productivity. A 9% increase in labor productivity would cause:
A. An increase in the average hourly compensation that depends on the change in hours worked
B. A 9% increase in average hourly compensation
C. A 6% increase in average hourly compensation
And WHY?
For questions like these, I suggest using concrete numbers. Suppose labour productivity=90, which implies that hourly wage=60. If labour productivity increases by 9%, then productivity becomes 98.1 – so the hourly wage is 2/3 of that, or 65.4.
You should be able to figure out the rest.
For questions like these, I suggest using concrete numbers. Suppose labour productivity=90, which implies that hourly wage=60. If labour productivity increases by 9%, then productivity becomes 98.1 – so the hourly wage is 2/3 of that, or 65.4.
You should be able to figure out the rest.
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