An increase in capital per hour (or capital deepening) leads to an increase in labor productivity. For example, consider factory workers in a motor vehicle plant. If workers have increased access to machinery and tools to build vehicles, they can produce more vehicles in the same amount of time.Click to see full answer. Accordingly, what is meant by capital deepening?Capital deepening is a situation where the capital per worker is increasing in the economy. Capital widening is the situation where the stock of capital is increasing at the same rate as the labour force and the depreciation rate, thus the capital per worker ratio remains constant.Secondly, how is capital deepening related to physical capital? Capital Deepening. When society increases the level of capital per person, the result is called capital deepening. The idea of capital deepening can apply both to additional human capital per worker and to additional physical capital per worker. Subsequently, one may also ask, why does capital deepening work with human capital? Capital deepening works with human capital because firms and employees themselves can go through training programs and on the job experiences, which will in return, deepen capital. Capital deepening encourages economic growth by increasing output and worker wages.What is Capital person?The quality of capital per worker is a measure of how much capital exists in an economy and how good that capital is. Imagine, for example, the difference between an economy where bakers are using wooden spoons to mix their cakes and one in which they use electric mixers.

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