An Increase in Capital Will Increase Real GNP Per Person

question 28

Multiple Choice

An increase in capital will increase real GNP per person

• A)more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
• B)more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
• C)less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
• D)less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.

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Definitions:

Total Cost

The aggregate expenditure involved in producing a set quantity of goods or services, including both fixed and variable costs.

Short-Run

In economics, a period during which at least one factor of production is fixed and cannot be changed, influencing cost and production decisions.

Machines

Devices or systems designed to perform tasks or processes automatically or with minimal human intervention.

Total Cost

The complete cost of production, including both fixed and variable costs, for producing a specified number of goods or services.