One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is:
A) China's larger stock of capital.
B) the higher capital/labor ratio in China.
C) the higher capital/labor ratio in the U.S.
D) China's smaller stock of fossil fuels.
E) the fact that much labor in the U.S. is in management.

Question

Quizplus · Accepted Answer

The higher capital/labor ratio in the U.S. is a factor contributing to the higher labor productivity compared to China. This means that there is more capital available to each worker in the U.S., which allows them to be more productive in their work. China may have a larger stock of capital overall, but if it is spread out among a larger population of workers, each worker has less capital to work with and may be less productive as a result.

One of the Factors Contributing to the Fact That Labor