If the Stock of Physical Capital (That Is Machinery,equipment,etc

question 300

Multiple Choice

If the stock of physical capital (that is machinery,equipment,etc. ) and human capital remain the same and the population increases,then

• A)labor productivity will increase.
• B)labor productivity will decrease.
• C)the standard of living will increase.
• D)the new labor will be more productive.
• E)real GDP decreases.

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Definitions:

Imperfect Competition

Imperfect competition describes a market structure where the conditions necessary for perfect competition are not met, including markets with monopolies, oligopolies, and monopolistic competition.

Marginal Productivity Theory

An economic principle that explains how the amount of extra output gained by employing an additional unit of input declines as more of that input is used.

Monopoly and Monopsony

A monopoly refers to a market with a single seller facing many buyers, whereas a monopsony is a market with a single buyer facing many sellers.

Marginal Product

The extra production resulting from the increase of a particular input by one unit, while keeping all other inputs unchanged.