Gamma Has $30,000 of Capital Per Worker, While Omega Has

question 11

Multiple Choice

Gamma has $30,000 of capital per worker, while Omega has $7,500 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will increase output ________ in Gamma compared to Omega, holding other factors constant.

• A)more
• B)less
• C)not at all
• D)by the same amount

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Income that is not subject to taxation by the IRS or state tax authorities; examples include certain gifts, inheritances, and some types of insurance payouts.

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The money paid out by a life insurance company to the beneficiary upon the insured's death.