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

Economics

You might also like to view...

In the United States, the inflation rate has

A) remained almost constant over the past 25 years. B) risen and fallen since the 1970s. C) fallen as a result of OPEC oil price hikes. D) risen constantly over the past 30 years.

Economics

The labor-supply and labor-demand curves for the market intersect:

A. at the equilibrium wage. B. above equilibrium price. C. at the number of unemployed people in the market. D. All of these statements are true.

Economics

Graphically, a decrease in advertising will cause the demand curve to:

A. shift rightward. B. become steeper. C. become flatter. D. shift leftward.

Economics

Consider the following characteristics:

a. a market structure with barriers to entry b. demand curves that are easily identified c. firm cannot make zero profits in the long run d. firm can reap long-run profits. Which of the characteristics in the list above is shared by an oligopolist and a monopolist? A) a, b, c, and d B) a, b, and d C) a, c, and d D) a and d

Economics