Which of the following will cause a reduction in output per worker (Y / N)?
A)a reduction in the capital stock (K)
B)a reduction in the saving rate
C)a reduction in K / N
D)all of the above

Question

Quizplus · Accepted Answer

A) A reduction in the capital stock (K) will reduce the stock of physical resources that workers have to work with, thus reducing output per worker.
B) A reduction in the saving rate will reduce investment in capital stock, leading to a reduction in output per worker.
C) A reduction in K/N means that there are fewer physical resources available per worker, which would also reduce output per worker.
Therefore, all of the above factors would cause a reduction in output per worker.

Which of the Following Will Cause a Reduction in Output