Question

What would be an example of increased productivity of capital?a. A forklift moves more pieces per hour when there is a more experienced operator at the wheel.b. A commercial truck uses less diesel fuel after a tune-up than it did before.c. A new automated lathe performs the same jobs faster than the older model did.d. A potter’s workshop starts paying for itself when the potter begins to sell finished pieces.e. A new piece of architectural software gets more use as workers gradually get familiar with it.

Answer 1

A. A forklift moves more pieces per hour when there is a more experience operator at the wheel.

Step-by-step explanation:

The ability to produce goods and services using capital and labour inputs is called economic productivity.

The output produced by a unit of capital is called capital productivity. Increase in the productivity of capital means that more output is produced in an hour of paid work or same output is produced in fewer paid hours.

Similarly when a more experienced operator is driving the forklift the work done in one hour also increases hence the productivity also increases.