A higher labor to capital ratio results in greater productivity of labor.

Name: A higher labor to capital ratio results in greater productivity of labor.
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Question

Quizplus · Accepted Answer

A higher labor to capital ratio means that there is more labor relative to capital. This does not necessarily result in greater productivity of labor, as productivity often increases with more capital (e.g., tools, machinery) per worker, allowing each worker to produce more.

A Higher Labor to Capital Ratio Results in Greater Productivity