Final answer:
The capital-to-labor ratio measures d) the amount of economic capital per worker. It indicates the quantity of resources and tools available to workers, affecting productivity and economic growth. Human and physical capital improvements can influence this ratio positively.
Step-by-step explanation:
The capital-to-labor ratio measures the amount of economic capital per worker. This concept is critical in understanding the efficiency and productivity of labor within an economy. The formula for this ratio quantifies the amount of physical and human capital that is available to each worker.
While capital typically refers to the financial resources, tools, machinery, and technology that contribute to the production process, labor represents the workforce or the human input in terms of skills, knowledge, and experience, also known as human capital.
Increasing the quantity and quality of labor can occur by growing the number of available workers or enhancing their skills and education levels, leading to increased human capital. As human capital rises, so generally does labor productivity, implying that workers can produce more output per unit of time.
A large workforce is certainly beneficial, but without adequate capital, the full potential of the labor force may not be realized. Additionally, capital deepening, which corresponds to an elevated amount of capital per worker, drives productivity growth, which is the primary determinant of an economy's long-term growth and has a significant impact on GDP per capita.
Therefore, the correct option that describes what the capital-to-labor ratio measures is d) the amount of economic capital per worker. This ratio serves as an indicator of how well-equipped workers are in terms of resources and tools to perform their tasks efficiently, which in turn affects the overall productivity and economic growth of a country.