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A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2015 · Q231 Mark

Company X reduces its workers from 250 to 200 and as a result its output decreases from 5000 to 4800 units per day. Company Y increases its workers from 800 to 1000 and as a result its output increases from 2000 to 2200 units per day. What happens to labour productivity of the workers in the two companies? [Table 23.1]

Afalls rises
Brises falls
Crises rises
Dfalls falls

✓ Correct answer

B: rises falls

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Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2015 Paper 1 Variant 2, question 23.

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