Improvements in output per worker
A)Depend only on increases in the quantity of capital equipment.
B)Depend only on increases in the quality of capital equipment.
C)Depend in large part on increases in the quality of capital equipment and the quantity of capital equipment per worker.
D)Do not depend on increases in the quantity of capital equipment or the quality of capital equipment.

Question

Quizplus · Accepted Answer

Improvements in output per worker depend on both the quantity and quality of capital equipment per worker. Increasing the quantity of capital equipment alone may not necessarily result in an increase in output per worker because there may be a point at which too much capital equipment leads to diminishing returns. Improvements in the quality of capital equipment can also lead to increased output per worker by increasing the efficiency and effectiveness of production processes. Therefore, both quantity and quality of capital equipment are important factors in improving output per worker.

Improvements in Output Per Worker