Other things held constant, investment in physical capital will increase:
A)labor productivity.
B)national income.
C)wages.
D)all of the above

Question

Other things held constant, investment in physical capital will increase:
A)​labor productivity.
B)​national income.
C)​wages.
D)​all of the above

Quizplus · Accepted Answer

Investment in physical capital increases labor productivity by providing workers with better or more tools and machinery, which in turn can lead to higher national income as the overall output of the economy increases. Higher productivity and national income can also lead to higher wages, as workers are able to produce more value.

Other Things Held Constant, Investment in Physical Capital Will Increase