An increase in the ratio of capital to labor ________ labor productivity.
A) increases
B) decreases
C) will not change
D) has an ambiguous impact on

Question

Quizplus · Accepted Answer

An increase in the ratio of capital to labor generally results in an increase in labor productivity. This is because capital can be used to improve worker productivity, such as through investment in technology or equipment. With more capital per worker, each worker has access to more resources and tools, leading to higher productivity.

An Increase in the Ratio of Capital to Labor ________