Increasing the capital available to the workforce,holding other factors constant,tends to _________ total output and to _________ average labour productivity.

Question

Quizplus · Accepted Answer

Increasing the capital available to the workforce means providing them with better tools, machinery or equipment which can aid them in their work. This would lead to an increase in total output as the workforce becomes more efficient in their production process. On the other hand, the increase in capital would also lead to an increase in average labour productivity as the workers can produce more output per unit of time when they have better tools and equipment available to them.

Increasing the Capital Available to the Workforce,holding Other Factors Constant,tends