The per capita output of an economy is likely to increase if:
A)the number of workers in the economy grows faster than its population.
B)the population of the country grows faster than its labor force.
C)the government increases the tax rates.
D)the government controls the number of illegal immigrant workers in the economy.
E)the government manages the foreign investment in the economy.

Question

Quizplus · Accepted Answer

The per capita output of an economy is calculated by dividing the total output of the economy by the population. Therefore, if the number of workers in the economy grows faster than its population, then the per capita output is likely to increase as there are more workers producing output. The other choices listed do not necessarily lead to an increase in per capita output.

The Per Capita Output of an Economy Is Likely to Increase