In a Small Asian Country,it Is Estimated That Changing the Level

question 10

Multiple Choice

In a small Asian country,it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million.What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million,assuming no technological change and no change in the hours of work?

• A)GDP would increase further,but by less than $2 million.
• B)GDP would increase further by exactly $2 million.
• C)GDP would increase further by more than $2 million
• D)GDP would increase further by exactly $8 million.

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Definitions:

Amount of Fruit

Refers to the total quantity of fruits present in a specific area or produced by a plant or group of plants at a given time.

Agricultural Industry

The sector of the economy concerned with the production, processing, and distribution of food, fibers, and other goods from farming and husbandry.

Terrestrial Ecosystems

Ecosystems found on land, characterized by the distinct types of vegetation and organisms adapted to the particular climate and soil conditions.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives through devices, processes, and systems.