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:

Sulfur Oxide

A chemical compound containing sulfur and oxygen, often produced through the burning of fossil fuels, and contributing to air pollution and acid rain.

Greenhouse Gas Emissions

Greenhouse gas emissions are gases released into the atmosphere that trap heat, contributing to global warming and climate change.

Tailoring Rule

A principle in environmental law that allows for regulations to be adjusted or "tailored" to fit the specific circumstances of different sources or categories of sources, rather than applying a one-size-fits-all approach.

Cap and Trade

An environmental policy tool that limits or caps the total level of certain greenhouse gas emissions and allows industries with low emissions to sell their extra allowances to larger emitters.