Which of the Following Will Cause an Increase in Output

question 21

Multiple Choice

Which of the following will cause an increase in output per effective worker?

• A) A doubling of capital and technology.
• B) An increase in population.
• C) A doubling of both capital and labour.
• D) An increase in technology.
• E) An increase in capital per effective worker.

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Definitions:

Geographical Imobility

Refers to the hindrance or difficulty in moving factors of production like labor or capital between different geographical locations.

Compensating Wage Differentials

The variation in pay rates due to differences in the job environment, hazards, and other non-monetary factors.

Education and Earnings

A principle indicating that higher levels of education lead to higher earnings over one's lifetime due to the acquisition of specialized skills and knowledge.

Positive Relationship

A correlation where two variables move in the same direction, meaning that as one variable increases, the other also increases.