Question

Assume that a war reduces a country's labor force but does not directly affect its capital stock. Then the immediate impact will be that: total output will fall, but output per worker will rise. both total output and output per worker will rise. both total output and output per worker will fall. total output will rise, but output per worker will fall.

Answer 1

Answer:

The correct answer is A. Total output will fall, but output per worker will rise.

Explanation:

In this situation, the reverse effect occurs, since there will be a smaller number of workers executing the tasks. This causes more work to be charged to them and for this reason the production of each one will increase; on the other hand, total production will be affected in the sense that fewer workers will not be able to equal or exceed total production.