Which of the Following Accurately Describes What Is Happening Along

question 131

Multiple Choice

Which of the following accurately describes what is happening along a typical aggregate production function?

• A)At some point, increasing the amount of physical capital per worker will reduce productivity.
• B)Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital.
• C)Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity.
• D)Adding workers results in real GDP per worker rising at an increasing rate throughout the function.