An Increase in the Amount of Capital Per Worker Is

question 14

Multiple Choice

An increase in the amount of capital per worker is called

• A)capital deepening
• B)marginal capital
• C)per-worker production function
• D)human capital
• E)diminishing marginal returns from capital

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Definitions:

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently depending on its source, intended use, or other psychological factors.

Irrational Behavior

Actions or decisions that do not logically follow from a rational analysis of the situation.

Misperception

A misunderstanding or incorrect interpretation of a situation, often leading to erroneous decisions or beliefs.

Opportunity Costs

The price paid for not choosing the second-best option available when deciding.