Narrbegin Exhibit 12 -According to Exhibit 12

question 36

Multiple Choice

Narrbegin Exhibit 12.2
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Capital stock } \\\text { per person }\end{array} & \begin{array} { c } \text { Output per } \\\text { person }\end{array} & \begin{array} { c } \text { Capital stock } \\\text { depreciation } \\\text { (at rate of 10 } \\\text { per cent) }\end{array} & \begin{array} { c } \text { Gross in- } \\\text { vestment } \\\text { per person }\end{array} & \begin{array} { c } \text { Required } \\\text { saving } \\\text { per per- } \\\text { son }\end{array} & \begin{array} { c } \text { Required } \\\text { saving } \\\text { rate }\end{array} & \begin{array} { c } \text { Consump- } \\\text { tion per } \\\text { person }\end{array} \\\hline 100 \quad ( \langle 20 \% ) & 40 & 10 & 10 & 10 & 25 \% & 30 \\\hline 120 \quad ( \langle 20 \% ) & 46 ( < 15 \% ) & 12 & 12 & 12 & 26 \% &-?- \\ \hline 144 \quad ( \langle 20 \% ) & \begin{array} { c } 50.6 ( < \\10 \% ) \end{array} & 14 & 14 & 144 & 28.5 \% & 36.2 \\\hline 172.8 ( \langle 20 \% ) & 53.1 ( \langle 5 \% ) & 17.3 & 17.3 & 17.3 & { } _ { - } { ?} _ { - } \% & 35.8 \\\hline\end{array}$$
-According to Exhibit 12.2, output per worker is increasing at a decreasing rate. This is due to:

• A) increasing returns to scale.
• B) decreasing returns to scale.
• C) diminishing marginal productivity.
• D) increasing marginal productivity.

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Definitions:

Inelastic Demand

A market condition in which the demand for a product does not change significantly when its price increases or decreases.

Necessity

A requirement or an indispensable item essential for survival or the functioning of a system.

Price of the Product

The financial cost of acquiring a good or service.

Buyer's Income

Buyer's Income is the total earnings or revenue available to consumers that influences their ability to purchase goods and services.