A Decrease in the Capital-Labor Ratio Means

question 121

Multiple Choice

A decrease in the capital-labor ratio means

• A)higher labor productivity because labor does more work
• B)lower labor productivity because labor is working with relatively less capital
• C)higher labor productivity because labor is producing less capital and more of other goods
• D)lower labor productivity because more capital is available
• E)higher labor productivity because more capital is available

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