If the Capital Stock Remains Fixed While the Supply of Labor

question 147

Multiple Choice

If the capital stock remains fixed while the supply of labor increases, it is likely that:

• A) output per capita will rise.
• B) the productivity of labor will not change.
• C) the new labor will be less productive than the old labor.
• D) the new labor will be more productive than the old labor.

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Definitions:

Great Plains

A broad expanse of flat land, much of it covered in prairie, steppe, and grassland, that lies west of the Mississippi River tallgrass prairie in the United States and east of the Rocky Mountains.

Beaver Hats

Fashionable and highly sought-after hats made from beaver pelts, popular in Europe and the Americas during the 17th and 18th centuries due to their durability and waterproof properties.

Fashion Statement

A way of expressing personal identity, style, or personal beliefs through specific fashion choices.

American Trade

Refers to the exchange of goods, services, and capital between the United States and other countries, characterized by its significant impact on the global economy.