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The relationship between a country's physical capital per worker and output per worker is positive negative...

The relationship between a country's physical capital per worker and output per worker is

positive

negative

fluctuating

there is no relationship
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Answer #1

Option A.

  • The relationship between a country's physical capital per worker and the output per worker is positive.
  • Physical capital refers to the equipment's, machineries or structures that each worker has.
  • It is denoted by K/L which is physical capital per worker while the productivity or the output per worker is denoted by Y/L.
  • When K/L increases, then Y/L also increases and vice versa.
  • This means that, if a worker gets better physical capital like equipment's or machines to produce any good or service, then he will be able to produce more output than before.
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