If the Number of Workers in the Economy Increase, but the Level

question 25

Multiple Choice

If the number of workers in the economy increase, but the level of capital is kept constant:

• A) the economy will experience diminishing returns.
• B) the total productivity of the economy will improve.
• C) the rate of return on capital will increase.
• D) the marginal productivity of labour will become positive.

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Definitions:

Complementary Goods

Products or services that are often used together, where the usage or consumption of one enhances the consumption of the other.

Blu-ray Players

Electronic devices that play Blu-ray discs, offering high-definition video and high-quality audio playback capabilities.

Blu-ray Discs

A digital optical disc data storage format designed to supersede the DVD format, offering higher storage capacity and better quality for video and audio.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.