An increase in capital per worker will generally______output, but to increase capital requires______Expenditure, which in turn requires resources that could have been used for producing______Goods.

Question

Quizplus · Accepted Answer

An increase in capital per worker generally leads to an increase in output because more capital means workers have more tools or machinery to work with, making them more productive. However, to increase capital, investment expenditure is required. This investment in capital means that resources are being used for creating or buying capital goods instead of being used for producing consumer goods, which are directly used by individuals.

An Increase in Capital Per Worker Will Generally______output, but to Increase