The Assumption of Constant Returns to Scale Suggests That If

question 6

Multiple Choice

The assumption of constant returns to scale suggests that if N and K both decrease by 7%:

• A) Y will decrease by exactly 7%.
• B) The capital- labour ratio (K/N) will decrease.
• C) Y will decrease by less than 7%.
• D) Y will decrease by more than 7%.
• E) The capital- labour ratio (K/N) will increase.

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Definitions:

Decoding Social Cues

The ability to interpret and respond appropriately to non-verbal signals in social interactions.

Social Information

Data derived from social contexts, including interpersonal interactions, that can influence behavior and perceptions.

Social Isolation

A state where an individual lacks a sense of social belonging, social engagement, and fulfilling relationships.

Stereotypic Rocking

A repetitive movement, commonly seen in some individuals with developmental disorders or those experiencing extreme stress, characterized by back-and-forth rocking of the body.