The Main Properties of a Neoclassical Aggregate Production Function Are

question 98

Multiple Choice

The main properties of a Neoclassical aggregate production function are ________ when all factors are increased proportionally and ________ when any one factor is increased on its own.

• A)increasing returns to scale; diminishing marginal returns
• B)constant returns to scale; diminishing marginal returns
• C)constant returns to scale; constant marginal returns
• D)decreasing returns to scale; diminishing marginal returns
• E)increasing returns to scale; increasing marginal returns

---

Definitions:

Introspection

The examination of one's own thoughts and feelings, a reflective process focused on understanding one's inner experiences.

Empiricism

The philosophy that knowledge comes primarily from sensory experience, emphasizing the role of observation and experimentation in science.

Theory

A systematic set of principles or explanation for understanding, predicting, or controlling some aspect of the natural or social world.

Psychometrics

The scientific study of the measurement of human abilities, attitudes, and traits through the development and application of psychological tests.