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

Economics

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The long-run aggregate supply curve is influenced by the price level

Indicate whether the statement is true or false

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Distinguish between a command-and-control economic system and a price system

What will be an ideal response?

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