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Will greater access to physical capital increase, decrease, or have no effect on labor productivity? Will...

Will greater access to physical capital increase, decrease, or have no effect on labor productivity? Will this make the economy more likely to grow faster, slower, or at the same rate as before? Explain your answers.

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Answer - The greater access to physical capital such as machines will enhance the productivity of labor. It will increase the capital per worker , greater output will be produced in lesser time and thus enhancing the efficiency. This increased productivity and increased efficiency will help to decrease the cost of production , produce the greater quantity of output and reduce the wastage of cost through greater efficiency. This will pave the way for the increased income and hence the economy will be on the path of growth.

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