Figure 25-1

question 44

Multiple Choice

Figure 25-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) .
-Refer to Figure 25-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

• A)In the long run,a higher saving rate leads to a higher growth rate of productivity.
• B)In the long run,a higher saving rate leads to a higher growth rate of income.
• C)Returns to capital become increasingly smaller as the amount of capital per worker increases.
• D)All of the above are correct.

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Definitions:

Prenatal Exposure

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Testosterone

A primary male sex hormone responsible for the development of male secondary sexual characteristics, although it is also present in females.

Estrogen

A group of hormones that play a critical role in female reproductive and sexual development, as well as impacting a variety of other bodily functions.

Biological Advantage

A natural benefit or edge that enhances an organism's ability to survive, reproduce, or adapt to its environment.