Suppose That There Are Diminishing Returns to Capital

question 168

Multiple Choice

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. What will happen in the long run?

• A) Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
• B) Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
• C) Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
• D) Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.

Identify changes in legal definitions and attitudes towards crime over time.

Examine the principles of the abolitionist movement and critique the prison system.

Understand principles of rehabilitation, reintegration, and deterrence within the criminal justice system.

Analyze theories related to deviance, including labeling theory, differential association, and strain theory.

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Definitions:

Cortex

The outer layer of the cerebrum in the brain, involved in complex functions including thought, memory, and consciousness.

Somatosensory Area

A region of the cortex involved in processing sensory information from the body, including touch, temperature, and pain.

Cortex

The outer layer of the brain involved in numerous higher brain functions, including thought, memory, and sensory processing.

Corpus Callosum

A large bundle of nerve fibers that connects the left and right cerebral hemispheres, facilitating communication between them.