An Aggregate Production Function Exhibits Increasing Returns to Capital When

question 112

Multiple Choice

An aggregate production function exhibits increasing returns to capital when

• A)no change in capital produces a 1% increase in output.
• B)a 1% decrease in capital produces an increase in the marginal product of capital.
• C)a 1% increase in capital produces no change in output.
• D)each additional unit of capital increases the number of jobs by more than 1%.
• E)each additional unit of capital has a higher marginal product than the previous unit.

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Definitions:

Sensate Level

Refers to the capacity or level at which physical sensations or feelings are experienced and perceived.

Symbolic Level

The symbolic level refers to the dimension of human culture and communication where symbols (objects, actions, or words) carry specific meanings within a culture or subculture.

Abstract Level

A term referring to a high degree of summarization or generalization, dealing with ideas rather than concrete realities.

Concrete Level

The specific, tangible phase or stage in the development or structure of something, often used in contrast with more abstract levels.