In Neoclassical Growth Theory,increasing the Amount of Capital Employed in Production

question 65

Multiple Choice

In Neoclassical growth theory,increasing the amount of capital employed in production ________ the average standard of living as long as the marginal product of capital exceeds zero.

• A)unambiguously raises
• B)unambiguously reduces
• C)has no effect on
• D)at first raises but eventually reduces
• E)at first reduces but eventually raises

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Definitions:

X

Often used to represent an unknown variable in mathematics.

Unit Price

The unit price is the cost per unit of a product, allowing for a standard comparison of costs among different sized packages of the same item.

Ounce

A unit of weight used in the British, United States, and other Imperial systems, equivalent to one-sixteenth of a pound.

Pineapple

A tropical fruit with a rough, spiky outer skin, sweet firm interior, and a tuft of stiff leaves on top.