Employing an additional 1 billion hours of labor increases real GDP by $12 billion. Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion
Hence we can conclude from this information that as employment increases, real GDP A) increases at an increasing rate.
B) decreases at an increasing rate.
C) decreases at a decreasing rate.
D) increases at a decreasing rate.
E) falls from $12 billion to $11 billion as more workers are hired.
D
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Two duopoly firms form a cartel. They decide to collude and fix the price of their good. Each individual firm will earn the highest profit if
A) it cheats and the other sticks with the agreement. B) both stick with the agreement. C) it sticks with the agreement and the other cheats. D) they both cheat.
Which of the following statements is true?
A) Corporations can issue stocks and bonds, while proprietorships cannot. B) Corporations face fewer taxes than do proprietorships. C) Corporations have one owner, while proprietorships have many owners. D) Proprietorships have limited liability while corporations have unlimited liability.