An increase in the capital utilized in the production process leads to what

a) an increase in specialization
b) an increase in labor and wages
c) an increase in workers' productivity
d) an increase in human capital utilization

Correct

C. an increase in workers' productivity

An increase in the capital used in the production process will make each worker capable of producing more output. The above is known as growth in labor productivity. This capital increase can be in the form of human or physical capital.

The economies of most European nations were in very poor shape.

Explanation:

After World War II, Europe was devastated by the long period of conflict. The war lasted six years, enough to drive many countries into chaos, harming the economies of the countries involved. Cities, factories, ports, roads and railroads had been bombed and many farms were destroyed. After the war ended, Europe needed to rebuild itself both socially and economically.

In this context of economic reconstruction, the Marshall Plan was launched in 1947, an ambitious project of US loans and financial donations to the European allies devastated by the Second World War. The Marshall Plan was a success and the countries of Europe quickly recovered.

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