In general, the production and use of capital ________ the productivity of labor and normally ________ wages.

A) enhances; drives up
B) enhances; drives down
C) diminishes; drives down
D) has no effect on; has no effect on

Productivity

The efficiency with which input resources are converted into outputs, often measured as the amount of goods or services produced per unit of input.

Wages

The monetary compensation paid by an employer to an employee in exchange for work performed, often specified in terms of hours, weeks, or tasks completed.