If There Are Diminishing Returns to Capital,then

question 141

Multiple Choice

If there are diminishing returns to capital,then

• A)capital produces fewer goods as it ages.
• B)old ideas are not as useful as new ones.
• C)increases in the capital stock eventually decrease output.
• D)increases in the capital stock increase output by ever smaller amounts.

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Definitions:

Level Of Success

A measure or evaluation of the extent to which specified goals, objectives, or tasks have been achieved.

Linearly Related

Describing a relationship between two variables where a change in one variable is associated with a proportional change in the other variable.

Significance Level

The probability of rejecting the null hypothesis when it is true; a measure of the risk of Type I error.

Test Statistic

A metric derived from sample data utilized in a hypothesis test to decide if the null hypothesis should be dismissed.