If the Number of Workers in an Economy Doubled, All

question 152

Multiple Choice

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, what would happen to productivity?

• A)It would fall to half its former value.
• B)It would fall but by less than half.
• C)It would stay the same.
• D)It would rise but less than double.

---

Definitions:

Discount on Bonds Payable

The difference by which the bond's face value exceeds its selling price, reducing the cost to the issuer.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest payments on outstanding debt.

Creditors

Entities or individuals to whom money is owed by a business or individual for goods or services provided or as a result of a loan.