If depreciation is less than investment ________.
A)capital per-worker is falling
B)capital per-worker is rising
C)capital per-worker is constant
D)capital per worker is greater than saving

Question

Quizplus · Accepted Answer

Depreciation is a decrease in the value of capital due to wear and tear, obsolescence, and other factors. If depreciation is less than investment, it means that more capital is being added to the economy than is being lost due to depreciation. This will cause the capital stock per worker to increase, resulting in "capital per-worker is rising."

If Depreciation Is Less Than Investment ________