If the Slope of the Per-Worker Production Function Is 1/2

question 156

Multiple Choice

If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

• A)Real GDP per hour worked will increase by $5,000.
• B)Real GDP per hour worked will increase by $20,000.
• C)Real GDP per hour worked will increase by $10,000.
• D)Real GDP per hour worked will decrease by $20,000.
• E)Real GDP per hour worked will increase by more than $20,000.

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Definitions:

Financial Statement Analysis

The practice of examining and evaluating a firm's financial reports to improve financial decision-making.

Comparative Financial Statements

Financial statements that provide financial information for multiple periods, enabling comparison and trend analysis over time.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity position, calculated by dividing liquid assets (excluding inventories) by current liabilities.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.