Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
d
You might also like to view...
The relationship between a consumer's monthly income and monthly consumption of four products, W-Z, is shown below. Quantity ConsumedIncomeWXYZ$4,00045902005,000601801015Which product listed is an example of an inferior good?
A. W B. X C. Y D. Z
The long-run aggregate supply curve is influenced by the price level
Indicate whether the statement is true or false
Distinguish between a command-and-control economic system and a price system
What will be an ideal response?
________ is the condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another
a. Economic growth b. Allocative inefficiency c. Inefficiency d. Efficiency