A country's capital stock decreased after a war while its labor supply remained constant. Which of the following will happen in this case if output is a function of capital and efficiency units of labor?
A) Its total output will remain constant. B) Its total output will decrease.
C) Its per capita output will remain constant. D) Its per capita output will increase.
B
You might also like to view...
Rational behavior for an economist means that individuals
A) are motivated by self-interest. B) never change their minds. C) always make positive choices. D) are self-sacrificing.
International specialization and trade according to the principle of comparative advantage is mutually beneficial for all economies involved
a. True b. False Indicate whether the statement is true or false
The intersection of the demand curve and the marginal-cost curve is equivalent to the socially-optimal level of output
a. true b. false
Which of the following will cause a decrease in the supply of jeans?
A. A decrease in the demand for jeans. B. A decrease in the price of jeans. C. An increase in the wages paid to workers who make jeans. D. A decrease in the expected future price of jeans.