If the Slope of the Per-Worker Production Function Is 1/4

question 111

Multiple Choice

If the slope of the per-worker production function is 1/4 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 $2,500.
• B)Real GDP per hour worked will increase by $40,000.
• C)Real GDP per hour worked will increase by $10,000.
• D)Real GDP per hour worked will decrease by $40.000.

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Definitions:

Tax Burdens

Tax burdens refer to the economic impact of taxes on individuals or corporations, often measured as a percentage of income or profits.

Ability to Pay

The principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically related to income or wealth levels.

Progressive Income Tax

A tax system where the tax rate increases as the taxable income increases, aimed at redistributing income more equitably.

Ability-to-Pay Principle

A taxation principle suggesting that taxes should be levied based on an individual's or entity's ability to pay, often implying higher rates for higher income levels.