"When workers have a relatively small quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity by a relatively large amount.". This statement
a. is an assertion that production functions have the property of constant returns to scale.
b. is consistent with the view that capital is subject to diminishing returns.
c. is inconsistent with the view that it is easier for a country to grow fast if it starts out relatively poor.
d. All of the above are correct.
b
You might also like to view...
A common characteristic in oligopolistic markets is
A. consideration of rivals’ reactions. B. standardized products. C. high profits. D. unused capacity.
Total fixed cost are costs that are fixed with respect to:
a. the rate of output. b. time. c. technology. d. the minimum wage or price supports.
Which of the following is true?
a. if an investment project is going to be undertaken, someone must increase his current consumption. b. saving and investment must always be undertaken by different individuals. c. if we invest more and use more of our resources to produce capital goods today, fewer current resources will be available to produce consumption goods. d. all of the above are correct.
Which statement about natural resources and a country’s economic growth is true?
a. Natural resources have a very limited impact on a country’s economic growth. b. Abundant natural resources can increase output, but sustained growth depends on other factors. c. A country’s economic growth determines its supply of natural resources. d. The presence of natural resources is the primary predictor of a country’s economic output.