Suppose There Are Constant Returns to Scale

question 106

Multiple Choice

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

• A)both output and productivity
• B)output,but not productivity
• C)productivity,but not output
• D)neither productivity nor output

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Definitions:

Bank Checking Account

A bank account that allows the holder to deposit and withdraw money and write checks.

Postdated Check

A check written with a future date, preventing it from being cashed or deposited until that date.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure they are in agreement.

Deposit in Transit

Funds that have been deposited by a company in its bank account but have not yet been recorded by the bank, leading to a timing difference in the company's accounting records.