If the Production Function for an Economy Had Constant Returns

question 190

Multiple Choice

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

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

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Definitions:

Wages And Salaries

Fixed regular payments made by employers to employees for their labor or services, typically paid on a monthly or hourly basis.

Lorenz Curves

A graphical representation used to illustrate the distribution of income or wealth within a society.

Nation's Total Income

The total amount of money earned within a country from its economic activities, including wages, profits, and investments, over a specific period.

Lower 60 Percent

Refers to the bottom 60% of individuals or households in terms of income or wealth distribution within a population.