If the Production Function for an Economy Had Constant Returns

question 80

Multiple Choice

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

• A) It would stay the same.
• B) It would increase by 50 percent.
• C) It would increase, but by something less than double.
• D) It would double.

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Definitions:

Memory Trace Decay

The theory that memory fades and disappears over time if not accessed and utilized, due to the biological processes of the brain.

Serial List

A method for organizing or presenting items in a specific sequential order, often used in memory and cognitive tests.

Alzheimer's Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and personality changes due to the degeneration and death of brain cells.

Dementia

A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember.