For Three Years, There Was No Technological Change in Longland

question 49

Multiple Choice

For three years, there was no technological change in Longland but capital per hour of labour increased from $10 to $20 to $30 and real GDP per hour of labour increased from $3.80 to $5.70 to $7.13. Then in the fourth year, capital per hour of labour remained constant but real GDP per hour of labour increased to $10. Longland ________ experience diminishing returns because ________.

• A)does; in the fourth year capital per hour of labour does not change
• B)does; as capital per hour of labour increases, real GDP per hour of labour increases but by smaller amounts
• C)does not; as capital per hour of labour increases, real GDP per hour of labour also increases
• D)does not; in the fourth year capital per hour of labour does not change
• E)does; all countries experience diminishing returns

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Definitions:

Unions

Collective organizations of workers that aim to negotiate better pay, benefits, and working conditions for their members through collective bargaining.

Suppress Workers

Actions taken by employers or authorities to limit or reduce the rights and voices of workers.

Critical Industrial Relations

An analytical approach that studies the power dynamics, conflicts, and inequalities within the labor market and workplace, often focusing on the role of labor unions and collective action.

Early Industrialization

The period marked by the transition from manual production methods to more mechanized and factory-based manufacturing, significantly impacting social and economic structures.