An Aggregate Production Function Exhibits Increasing Returns to Capital When

question 54

Multiple Choice

An aggregate production function exhibits increasing returns to capital when

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

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Definitions:

Withholding Information

A form of communication control where information is deliberately kept from others who might need or want it.

Participation

The act of taking part or being involved in an activity, decision-making process, or event.

Organization Development

A field of study and practice focused on improving organizational efficiency and effectiveness through planned interventions.

Systematic

An approach characterized by methodical planning and organization, often applied to procedures and processes.