The capital-to-labor ratio is:Question 40 options:a) a key element in decreasing real wages.b) high in rich countries.c) the ratio of managers to workers.d) high in poor countries.

The correct answer is letter "B": high in rich countries.

Explanation:

The capital-to-labor (K/L) ratio studies the relationship between the capital and labor used in the process of producing a good or rendering a service. When capital is higher, the capital-to-labor ratio is high as well. This scenario is common in developed countries with important investment in technology and equipment aiming to increment productivity.