If the Production Function Exhibits Decreasing Returns to Scale in the Steady

question 94

Multiple Choice

If the production function exhibits decreasing returns to scale in the steady state, an increase in the rate of population would lead to:

• A) growth in total output and growth in output per worker.
• B) growth in total output but no growth in output per worker.
• C) growth in total output but a decrease in output per worker.
• D) no growth in total output or in output per worker.

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Definitions:

Cerebellum

A region of the brain at the back of the skull in vertebrates, crucial for motor control, coordination, precision, and timing of movements.

Temporal Lobes

The portion of the cerebral cortex lying roughly above the ears; includes the auditory areas, each receiving information primarily from the opposite ear.

Top-Down Processing

A cognitive process that uses pre-existing knowledge or expectations to interpret and understand sensory information.

Sensory Information

Data received by the senses (sight, hearing, touch, taste, and smell) that is processed by the brain.