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:

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for the beneficiary's education expenses, including K-12 and higher education.

Qualified Education Expenses

Expenses required for enrollment or attendance at an educational institution, including tuition, fees, and related costs.

Retirement Plan

A retirement plan refers to financial strategies of saving, investment, and ultimately distribution of money meant to sustain an individual’s standard of living in retirement.

Savings Account

A bank account that earns interest on the deposited funds, designed for saving money over a period of time.