The increase in real GDP per hour of labor that results from an increase in capital per hour of labor ______.
A. is constant and independent of the quantity of capital
B. is larger at a small quantity of capital than at a large quantity of capital
C. is smaller at a small quantity of capital than at a large quantity of capital
D. decreases as technology advances
Answer: B. is larger at a small quantity of capital than at a large quantity of capital
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Which of the following would be expected to shift the consumption function up?
A) decreases in wealth B) increases in the nation's population C) expectations of harder times ahead D) changes in real disposable income
A continuing, long-term, large decline in the demand for coffee will not cause the price of coffee to fall much over the years if
A) coffee is not scarce. B) the demand for coffee is highly elastic. C) the demand for coffee is highly inelastic. D) the supply of coffee is highly elastic. E) the supply of coffee is highly inelastic.