If Increases in Capital Per Worker Lead to Increased Output

question 142

Multiple Choice

If increases in capital per worker lead to increased output per worker,but by decreasing amounts as capital increases,the per-worker production function _____.

• A)is vertical
• B)has a decreasing slope
• C)has an increasing slope
• D)has a negative slope
• E)is horizontal

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Definitions:

Diffusion

The process through which an innovation is communicated over time among the participants in a social system.

Innovation

The act of inventing, evolving, and applying novel concepts, goods, or techniques to enhance or substitute the current ones.

Observability

The degree to which the results of an innovation or change can be seen and understood by others.

Diffusion

The process by which innovations or cultural practices spread within and across populations over time.