If Capital Per Worker Increases, Labour Productivity

question 70

Multiple Choice

If capital per worker increases, labour productivity

• A)decreases for a given level of technology.
• B)increases because the level of technology increases.
• C)increases for a given level of technology.
• D)decreases because the level of technology decreases.
• E)does not change unless technology advances at the same time.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, intended to account for the decrease in value due to use and age.

Units-Of-Output Method

A depreciation method where the expense is based on the actual usage or production output of the asset.

Depreciation Rates

Depreciation rates are percentages or methods used to systematically reduce the carrying value of a tangible or fixed asset over its useful life.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the reduction in value due to wear and tear, age, or obsolescence.