If the capital stock ________ while the supply of labor ________, it is likely that the productivity of labor will fall.
A) increases; decreases
B) remains fixed; increases
C) increases; increases
D) increases; remains fixed

Question

Quizplus · Accepted Answer

If the capital stock remains fixed while the supply of labor increases, there is less capital available per worker, which can lead to a decrease in labor productivity.

If the Capital Stock ________ While the Supply of Labor