If the Production Function for an Economy Had Constant Returns

question 80

Multiple Choice

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

• A) It would stay the same.
• B) It would increase by 50 percent.
• C) It would increase, but by something less than double.
• D) It would double.

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Definitions:

1,3-Butadiene

A colorless, flammable gas with a mild odorous smell, used in the production of synthetic rubber and other polymers.

HOMO

Stands for Highest Occupied Molecular Orbital, the topmost energy level occupied by electrons in a molecule under normal conditions.

1,3-Butadiene

An elementary conjugated diene with a molecular composition of C4H6, employed in the manufacture of synthetic rubber as a monomer.

HOMO

Highest Occupied Molecular Orbital, the topmost energy level occupied by electrons in a molecule under normal conditions.