In a Small Asian Country, It Is Estimated That Changing

question 131

Multiple Choice

In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million. If the number of hours worked in the labour force does not change, what does this information tell you about the slope of the per-worker production function in this range?

• A)The slope is -4.
• B)The slope is 1/4.
• C)The slope is 2.
• D)The slope is 4.
• E)The slope is 8.

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Definitions:

Human Judgment

The cognitive process of making decisions or drawing conclusions based on personal knowledge, experience, senses, and emotions.

Additive Form

A mathematical or statistical model where the components or factors are combined through addition to predict or estimate outcomes.

Systematic Component

The part of a process or model that can be directly explained by variables within the system, leading to predictable outcomes.

Seasonal Factor

Variations in demand, supply, or other business indicators that occur at specific times of the year.