What will an increase in the amount of capital per worker do to labour and capital productivities?
A) Labour productivity will increase, but capital productivity will stay the same.
B) Capital productivity will increase, but labour productivity will stay the same.
C) Labour productivity will increase and capital productivity will increase.
D) Labour productivity will decrease and capital productivity will decrease.

Question

What will an increase in the amount of capital per worker do to labour and capital productivities?  
A) Labour productivity will increase, but capital productivity will stay the same. 
B) Capital productivity will increase, but labour productivity will stay the same. 
C) Labour productivity will increase and capital productivity will increase. 
D) Labour productivity will decrease and capital productivity will decrease.

Quizplus · Accepted Answer

An increase in the amount of capital per worker typically leads to an increase in labour productivity because workers have more or better tools to work with, enhancing their output per unit of labour. However, capital productivity might not necessarily increase and could even decrease as the additional capital could lead to diminishing returns.

What Will an Increase in the Amount of Capital Per