When the total factor productivity is increasing, the physical & human capital per worker decrease but real GDP per worker remains unchanged.
The options to the question includes:
- human capital per capita, and real GDP per capita remain constant.
- Physical capital per worker and human capital per worker decrease, but real GDP per worker remains unchanged.
- The size of the labor force falls due to emigration which leads to a decrease in real GDP and human capital per worker.
- Real GDP per worker remains unchanged and physical capital per worker increases
- Real GDP per worker grows at the same rate as human capital per worker.
Total factor productivity refers to the measure of productive efficiency by comparing how much of output can be produced from a certain amount of inputs.
Usually, a firm experience an increase in technology improvement or productivity when its get more output for the same inputs or the same outputs from lesser inputs.
Increase in factor productivity will be experienced when the physical & human capital per worker is decreasing and real GDP per worker remains constant.
Therefore, in conclusion, Option B is correct.
Read more on this here
brainly.com/question/15396642
