If the quantity of capital per worker in the economy increases,

Question

Quizplus · Accepted Answer

When the quantity of capital per worker in the economy increases, each worker has more tools and equipment to work with, which increases labor productivity. Therefore, A is the correct choice. B is not necessarily true because the increase in capital does not necessarily lead to an increase in the stock of human capital. C and D are unrelated to an increase in capital per worker.

If the Quantity of Capital Per Worker in the Economy