I know the asnwer is between C and D but I do not know which one is wrong. what

Question

I know the asnwer is between C and D but I do not know which one is wrong. what does capital stock mean? and what is final answer? thanks

5. Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was (a) higher this year than last year. A possible source of this change in productivity (b) higher this year than last year. A change in the size of the capital stock does c) lower this year than last year. A possible source of this change in productivity d lower this year than last year. A change in the size of the capital stock does is a change in the size of the capital stock. not affect productivity. is a change in the size of the capital stock. not affect productivity.

Explanation / Answer

Solution: lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock

Explanation:

Workers

Hours

Productivity

Productivity per worker

800

8

12800

16

1000

8

14000

14

Thus evdent from table above that this year's productivity is lower than last year. The main cause for it can be a a change in the size of the capital stock as it has major influence on productivity.

In economics, capital stock refers to the equipment, plant, and other assets that assits with production.

Workers

Hours

Productivity

Productivity per worker

800

8

12800

16

1000

8

14000

14

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