which of the following best describes the relationship captured by the aggregate production function? choose…

which of the following best describes the relationship captured by the aggregate production function? choose 1 answer: a productivity is inversely related to output per worker b productivity decreases as more capital per worker is added c output per worker increases at an increasing rate as more capital per worker is added d increases in real gdp per capita happens only if capital per worker increases e output per worker is positively related to capital per worker

which of the following best describes the relationship captured by the aggregate production function? choose 1 answer: a productivity is inversely related to output per worker b productivity decreases as more capital per worker is added c output per worker increases at an increasing rate as more capital per worker is added d increases in real gdp per capita happens only if capital per worker increases e output per worker is positively related to capital per worker

Answer

Brief Explanations:

The aggregate - production function shows that output per worker is positively related to capital per worker. As more capital per worker is available, workers can be more productive and produce more output. Productivity is not inversely related to output per worker (A is wrong). Usually, more capital per worker increases productivity (B is wrong). Output per worker increases at a decreasing rate as more capital per worker is added due to diminishing returns (C is wrong). Increases in real GDP per capita can happen due to factors other than just an increase in capital per worker like technological progress (D is wrong).

Answer:

E. Output per worker is positively related to capital per worker