An increase in the amount of capital per worker will:
A)increase labor productivity but not capital productivity.
B)increase capital productivity but not labor productivity.
C)increase both labor and capital productivity.
D)shift the per-worker production function upward.
E)increase total output but not the productivity levels of individual workers.

Question

Quizplus · Accepted Answer

An increase in the amount of capital per worker typically leads to an increase in labor productivity, as workers have more or better tools to work with, but it does not necessarily increase capital productivity.

An Increase in the Amount of Capital Per Worker Will