An Aggregate Production Function Exhibits Increasing Returns to Capital When

question 112

Multiple Choice

An aggregate production function exhibits increasing returns to capital when

• A)no change in capital produces a 1% increase in output.
• B)a 1% decrease in capital produces an increase in the marginal product of capital.
• C)a 1% increase in capital produces no change in output.
• D)each additional unit of capital increases the number of jobs by more than 1%.
• E)each additional unit of capital has a higher marginal product than the previous unit.

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Definitions:

Teratogens

Substances or agents that can cross the placental barrier and produce fetal deformities when taken or absorbed by the mother during pregnancy.

Genetic Mutations

Permanent alterations in the DNA sequence that makes up a gene, which can result in variations in physical traits and health conditions.

Defective Alleles

Variant forms of a gene that may cause a malfunction or absence of the gene's normal function.

Genetic

Relating to genes or heredity, encompassing the study of how traits and characteristics are transmitted from parents to offspring.