When society has a higher level of capital per person, it is called ______________.

• A. capital depreciation
• B. capital rationing
• C. capital mobility
• D. capital deepening

Answer: (D)

Verified step by step guidance

1. Understand the concept of capital per person, which refers to the amount of physical capital (like machinery, tools, infrastructure) available on average for each worker or individual in the economy.
2. Recognize that when the amount of capital per person increases, it means workers have more or better capital to work with, which can improve productivity.
3. Recall the term used in economics for an increase in capital per worker: this is known as 'capital deepening'.
4. Differentiate 'capital deepening' from other terms: 'capital depreciation' refers to the wearing out of capital, 'capital rationing' involves limiting investment due to budget constraints, and 'capital mobility' relates to the ease of moving capital across regions or countries.
5. Conclude that the correct term for a higher level of capital per person in society is 'capital deepening'.