An Increase in Physical Capital Per Worker Will

question 154

Multiple Choice

An increase in physical capital per worker will

• A) lead to more output per worker.
• B) lead to lower standards of living.
• C) increase the standard of living only if coupled with an increase in other inputs.
• D) reduce the productivity of labor.

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Definitions:

FIFO Perpetual

An accounting method where goods are sold based on the order they were purchased or produced; "FIFO" stands for "first in, first out," and "perpetual" means the inventory records are updated continuously.