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.

---

Definitions:

Natural State

A condition or situation perceived as inherent and untouched by human influence, often referring to environments or human behavior.

Thomas Hobbes

A 17th-century English philosopher known for his work on political philosophy, especially as articulated in his book "Leviathan," where he discusses the structure of society and legitimate government.

Formal Social Structures

Organized and established social patterns and institutions that dictate behavior and relationships within a society.

Jean-Jacques Rousseau

An 18th-century philosopher known for his contributions to political philosophy, especially regarding concepts of social contract and the natural goodness of humanity.