Keeping the Marginal Productivity of Capital Constant While Investment in Plant

question 65

Multiple Choice

Keeping the marginal productivity of capital constant while investment in plant and equipment expands requires

• A) a slowdown in the growth rate.
• B) a decrease (shift to the left) in the marginal productivity of capital schedule.
• C) a falling rate of return on investment.
• D) that the productivity of existing technology be exhausted before investing in something new.
• E) continued development of new technologies, products, and processes.

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Definitions:

Graduate Class

An advanced course of study designed for students who have already completed undergraduate degrees.

Semantic Differential

A rating scale that provides a statement followed by one or more pairs of words that reflect opposing traits. A number line may or may not be associated with the dichotomous pairs of words.

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A scale or system for measuring or evaluating the performance, level of agreement, or intensity of feelings on a linear or ordinal basis.

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A visual representation of numbers on a straight line, where each point corresponds to a number, often used to teach basic math concepts such as addition and subtraction.