Which of the following situations will result in an increase in the capital- labour ratio?
A) Investment per worker equals saving per worker.
B) Saving per worker equals depreciation per worker.
C) Output per worker exceeds capital per worker.
D) Investment per worker exceeds depreciation per worker.
E) Investment per worker is less than depreciation per worker.

Question

Quizplus · Accepted Answer

Investment per worker exceeding depreciation per worker means that the amount of capital per worker is increasing over time, leading to an increase in the capital-labour ratio.

Which of the Following Situations Will Result in an Increase