If a country has a low capital-to-labor ratio, then it tends to have _____ labor productivity _____ wages.

Question

Quizplus · Accepted Answer

If a country has a low capital-to-labor ratio, it means there is less physical capital available for each worker, which leads to lower labor productivity. This can result in lower wages since workers are producing less value per hour worked. Therefore, the correct choice is C, low labor productivity and low wages.

If a Country Has a Low Capital-To-Labor Ratio, Then It