If Capital Per Hour of Labor Decreases, Real GDP Per

question 79

Multiple Choice

If capital per hour of labor decreases, real GDP per hour of labor

• A) decreases because the level of technology decreases.
• B) increases because the level of technology increases.
• C) increases for a given level of technology.
• D) decreases for a given level of technology.

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Definitions:

Advertising Dollars

The amount of funding allocated to promotional activities in order to increase product or service visibility.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing as scale is increased.

Value Chains

The full range of activities that businesses go through to bring a product or service from conception to delivery to the end user.

Economies of Scope

Cost advantages that a business obtains due to a broader range of operations or production levels.