Decreasing returns to capital (K) implies that a 4% increase in K will cause
A) a reduction in output per worker (Y/N).
B) a reduction in K/N.
C) Y to increase by exactly 4%.
D) Y to increase by less than 4%.
E) no change in Y/N.
D
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Along the 45-degree reference line
A. total planned nominal expenditures = consumption. B. total planned real expenditures = real GDP. C. total planned real expenditures = planned nominal expenditures. D. total planned investment spending = planned real expenditures.
In the market for euros, the supply of euros (€) is
A. upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans. B. downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans. C. downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans. D. upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans.
In general, we would expect the marginal cost of pollution abatement to be
A. decreasing. B. increasing. C. zero. D. constant.
A firm’s optimal input proportions may change if
A. input prices change. B. the relative marginal productivities of the inputs change. C. the firm’s optimal output level changes. D. All of the responses are correct.