Because of Diminishing Returns, an Economy Can Continue to Increase

question 29

Multiple Choice

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

• A)there are decreases in human capital.
• B)the per-worker production function shifts downward.
• C)there continue to be decreases in capital per hour worked.
• D)there is technological change.
• E)there continue to be increases in capital per hour worked.

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Definitions:

Budgeting

The process of creating a plan to spend money over a particular period, a fundamental practice in financial planning and management.

Planning Budget

A budget designed for planning and preparing the financial strategies of an organization, often used to estimate future revenues and expenses.

Employee Salaries

Fixed payments made regularly by an employer to an employee for their work, not typically dependent on the hours worked.

Wells Serviced

The number of oil or gas wells undergoing maintenance, inspection, and repair within a specified timeframe.