If the quantity of capital per worker in the economy increases

Question

Quizplus · Accepted Answer

An increase in the quantity of capital per worker typically leads to an increase in labor productivity because workers have more or better tools and equipment to work with, making their output per unit of time higher. This does not necessarily mean that workers hold more money, that the stock of human capital (skills, knowledge, experience) increases, or that the public holds more financial assets.

If the Quantity of Capital Per Worker in the Economy