If Capital Per Worker Decreases, Real GDP Per Hour of Labour

question 60

Multiple Choice

If capital per worker decreases, real GDP per hour of labour

• A)decreases because the level of technology decreases.
• B)increases because the level of technology increases.
• C)increases for a given level of technology.
• D)decreases for a given level of technology.
• E)none of the above

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Definitions:

Price Ceilings

A government-imposed limit on the price charged for a product to prevent prices from rising to a certain level above equilibrium.

Price Floors

Government or regulatory-set minimum prices for goods or services, aimed at preventing prices from falling too low.

Price

The cost involved in purchasing a specific good or service.

Shortage

A situation where the demand for a product exceeds its supply, often leading to higher prices.