An increase in the capital stock
A) can increase output, even if it is not accompanied by an increase in the labor force.
B) provides valuable services directly, but not indirectly.
C) can increase output, but only if it is accompanied by an increase in the labor force.
D) cannot increase output, even if it is accompanied by an increase in the labor force.

Question

Quizplus · Accepted Answer

Increasing the capital stock can increase output even if there is no increase in the labor force. New or upgraded equipment and tools can make workers more productive and increase the efficiency of production processes.

An Increase in the Capital Stock