If an economy is very unproductive
A) a low value of capital per worker would result in a high level of output per worker.
B) the value of E in the Cobb-Douglas production function has a large value.
C) the value of capital per worker is small.
D) not even large amounts of capital per worker will boost output per worker to achieve what we would think of as prosperity.

Question

Quizplus · Accepted Answer

In an unproductive economy, even large amounts of capital per worker will not significantly increase output per worker to levels associated with prosperity. This is because productivity involves more than just capital input; it also includes factors like technology, efficiency, and human capital quality.

If an Economy Is Very Unproductive