Otod905 Otod905
  • 03-03-2020
  • Business
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How do economists refer to the amount of capital employed per worker?

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Heroine26
Heroine26 Heroine26
  • 10-03-2020

Answer: The capital-labor ratio

Explanation: The capital-labour ratio can measure the capital intensity of a firm. Economist refer to capital ratio as the amount of capital employed per worker in a firm. however, over time, firms tend to have a higher capital-labour ratio as they seek to gain productivity improvements from investment in capital and automating the production process.

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