Answer: Increasing business investment

## Explanation **Option A is correct:** Increasing business investment most likely results in the largest increase in per capita output. **Economic reasoning:** **With fixed labor supply:** - Per capita output = Total output ÷ Number of workers - To increase per capita output, you need to increase productivity - Business investment in capital goods, technology, and equipment directly boosts labor productivity **Why business investment is most effective:** - Directly increases capital per worker - Enhances technology and production efficiency - Creates economies of scale - Drives innovation and productivity gains **Foreign investment (Option B):** - While beneficial, its impact is more indirect - May focus on specific sectors rather than economy-wide productivity - Benefits depend on how capital is allocated **Key concept:** In developed economies with stable labor forces, productivity growth through capital investment is the primary driver of per capita output growth.

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