Asked by Courtney Coffman on May 09, 2024
Verified
As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.
Capital Per Worker
The amount of capital (tools, machinery, and equipment) available per employee, affecting the productivity and efficiency of labor.
Output Per Worker
A measure of labor productivity calculated by dividing total output by the number of workers.
- Comprehend the role of human capital in fostering economic growth and increasing productivity.
- Acquire insight into the relationship between a country's economic performance and its investment and savings rates.
Verified Answer
GA
Gökçe ArugünMay 13, 2024
Final Answer :
False
Explanation :
As capital per worker rises, output per worker indeed increases, but the increase in output per worker is smaller at higher levels of existing capital per worker due to diminishing returns to capital.
Learning Objectives
- Comprehend the role of human capital in fostering economic growth and increasing productivity.
- Acquire insight into the relationship between a country's economic performance and its investment and savings rates.
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