A country that has a low ratio of capital per worker needs less output to renew existing capital as compared to a country with a high ratio of capital per worker.

Question

Quizplus · Accepted Answer

A country with a low ratio of capital per worker has fewer capital goods per worker. This means that there is less wear and tear on existing capital goods, and therefore less output is needed to maintain and renew them. In contrast, a country with a high ratio of capital per worker has more capital goods per worker, and therefore requires more output to maintain and renew them.

A Country That Has a Low Ratio of Capital Per