True or false?
The statement is true. The improvement in efficiency will raise the output that can be obtained from the existing capital stock and hence increase the incomes of the residents of all countries along with the future output that can be obtained from the current fraction of lifetime income saved. This will increase the per capita income of the next generation. The only way in which an increase in a country's per capita income could not occur is if the domestic residents happen to lose income to the rest of the world as a result of the improvement of world efficiency. This is possible but would not typically be the case.