Which of the Following Will Occur When the Capital Stock

question 49

Multiple Choice

Which of the following will occur when the capital stock increases?

• A) There will be no change in profit per unit of capital.
• B) Profit per unit of capital will decrease.
• C) Profit per unit of capital will increase.
• D) Profit per unit of capital initially increases followed by decreases.
• E) There will be an ambiguous effect on profit per unit of capital.

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Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without previous conditioning or learning.

Conditioned Response

An acquired reaction to a stimulus that initially had no specific response but has been paired with an unconditioned stimulus through the process of conditioning.

Classical Conditioning

The process of learning that happens when an ambient stimulus is paired with a stimulus that occurs naturally, causing a learned behavior.

Operant Conditioning

A means of learning in which the magnitude of an action is shaped by reinforcements or consequences.