A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) grew from $20,000 to $25,000
If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change?
A) Output per worker will increase by less than $5,000.
B) Output per worker will increase by exactly $5,000.
C) Output per worker will fall by more than $5,000.
D) Output per worker will increase by more than $5,000.
A
You might also like to view...
Suppose you purchase a bottle of vitamin water with a price of $3. The price of $3 best reflects the function of money as a ________, and when you take $3 out of your wallet to purchase the bottle, money is functioning as a ________
A) medium of exchange; standard of deferred payment B) store of value; unit of account C) unit of account; medium of exchange D) medium of exchange; store of value
Refer to Figure 10.2. Which line represents wealth?
A. b
B. h
C. f + i
D. g
The countries of ______ and _____ have a significant influence over changes in U.S. interest rates.
Fill in the blank(s) with the appropriate word(s).
New scientific knowledge mainly comes from university and government laboratories, not private firms, because:
A. large corporations do not have funds available to channel toward basic research. B. government pays scientists higher salaries than do private firms. C. entrepreneurs find it difficult to secure venture capital to finance innovation. D. basic scientific principles, as such, cannot be patented and do not always have commercial