Why Would an Increase in Capital Resources Lead to an Increase

question 21

Multiple Choice

Why would an increase in capital resources lead to an increase in worker productivity?

• A) More capital means that fewer workers are needed,increasing output.
• B) More capital leads to a decrease in wages,leading employees to work harder.
• C) More capital means that workers have better tools and equipment and can produce more.
• D) More capital means that the owners of a company reap all of the benefits of labor.
• E) More capital causes decreasing returns to scale.

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