Suppose That There Are Diminishing Returns to Capital

question 16

Multiple Choice

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

• A)both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with more capital.
• B)both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with less capital.
• C)both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
• D)both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.

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Definitions:

Unmyelinated C Fibres

Nerve fibers lacking a myelin sheath, involved in transmitting slow-conducting pain and temperature sensations.

Myelinated A-Delta Fibres

Fast-conducting nerve fibers wrapped in myelin sheath that transmit sharp, immediate pain signals to the brain.

Throbbing Pain

A type of pain characterized by a pulsating sensation, often in sync with the heartbeat, and usually indicative of inflammation or other underlying conditions.

Pain Pathway

The physiological process that transmits signals from the site of injury or ailment through the nervous system to the brain, where pain is perceived.