Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if
A) the per-worker production function shifts downward.
B) there is technological change.
C) there are decreases in human capital.
D) there continue to be decreases in capital per hour worked.
B
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Differences in the stock of human capital between nations are an example of a(n):
A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.
Exchanges of stocks take place
A) in New York City only. B) in the principle financial city of each country, such as New York City for the United States and London for England. C) in a decentralized fashion around the world. D) in centralized physical locations known as stock exchanges and online through Internet brokers.
The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The entire curve. b. The downward-sloping segment only. c. The upward sloping segment only. d. The point where labor input is zero.
Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C