As more capital per worker is added, a per worker production function generally becomes:
a. flatter because capital is subject to diminishing marginal returns.
b. flatter because labor is subject to diminishing marginal returns.
c. flatter because capital is subject to increasing marginal returns.
d. steeper because capital is subject to diminishing marginal returns.
a
You might also like to view...
Suppose Pippi buys an oven for her pizza parlor for $100,000. Pippi's pizza tasted so pitiful she went out of business 12 months later. She was able to sell the pizza oven for $75,000. This decrease in the value of the oven is
A) the total implicit rental rate on the oven. B) an economic loss. C) economic depreciation. D) interest forgone.
If a nation's Lorenz curve lies on the 45-degree line of income equality:
A. income is unequally distributed. B. proportionately more of the nation's income is received by the highest 20 percent of families than by the lowest 20 percent. C. the income received by each 20 percent of families is 20 percent of the total income. D. proportionately more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.
In January 2015, Tim's Gyms, Inc owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's gross investment totaled
A) $1 million. B) $300,000. C) $200,000 D) $900,000.
Contractionary fiscal policy is so named because it:
A. is expressly designed to contract real GDP. B. involves a contraction of the nation's money supply. C. necessarily reduces the size of government. D. is aimed at reducing aggregate demand and thus achieving price stability.