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:

Loses Temper

Exhibiting a sudden outburst of anger or irritation, often in a manner that is uncontrolled or disproportionate to the situation.

Assertiveness

The quality of being self-assured and confident without being aggressive, in order to express one's opinions and desires effectively.

Compromise

A process of finding a middle ground between two conflicting positions, where each party makes concessions to reach an agreement.

Implausible Demand

A request or expectation that is unlikely to be met due to its unreasonable nature.