Constant Returns to Scale Refers to a Situation That When

question 14

Multiple Choice

Constant returns to scale refers to a situation that when capital and labor both double,

• A) output more than doubles
• B) output less than doubles
• C) output just doubles
• D) output does not change

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Definitions:

Emilio Aguinaldo

A Filipino revolutionary, politician, and military leader who is considered to be the first and the youngest President of the Philippines and led Filipino forces during the Spanish-American War and the Philippine-American War.

Philippine Islands

An archipelago of over 7,000 islands in Southeast Asia, governed as a territory of the United States from 1898 until its independence in 1946.

Clayton-Bulwer Treaty

An 1850 agreement between the United States and Great Britain aiming to neutralize Central American territories and stipulate that neither nation would exclusively control a transoceanic canal.

Central American Canal

A concept referring to a canal through Central America, such as the Panama Canal, facilitating maritime trade between the Atlantic and Pacific Oceans.