If an Economy with Constant Returns to Scale Were to Double

question 77

Multiple Choice

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

• A)its output would stay the same and so would its productivity.
• B)its output and productivity would increase,but less than double.
• C)its output and productivity would increase by more than double.
• D)None of the above is correct.

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Definitions:

John Bell

A Tennessee politician who was the Constitutional Union Party candidate for president in 1860, known for his moderate stance on the issue of slavery.

Elkhorn Tavern

A historically significant building located within Pea Ridge National Military Park in Arkansas, known for its role during the Civil War.

Honey Springs

The site of a significant 1863 Civil War battle in the Indian Territory, where Union forces secured a victory that was pivotal for control over the region.

Guerrilla Raids

Small, unexpected attacks conducted by independent or irregular military groups, often against larger traditional military forces, typically aiming at disruption rather than occupation.