If an Economy with Constant Returns to Scale Were to Double

question 77

Multiple Choice

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

• A)its output would stay the same and so would its productivity.
• B)its output and productivity would increase,but less than double.
• C)its output and productivity would increase by more than double.
• D)None of the above is correct.

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Definitions:

Diathesis-Stress Model

The Diathesis-Stress Model is a psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences, contributing to mental disorders.

Biologically Vulnerable

Refers to individuals or organisms that have an increased risk of developing health problems due to genetic, physiological, or environmental factors.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders used by mental health professionals in the U.S.

Factual Basis

Factual basis refers to the underlying real facts or data that support a statement, argument, or hypothesis.