If the Production Function Exhibits Increasing Returns to Scale in the Steady

question 54

Multiple Choice

If the production function exhibits increasing returns to scale in the steady state, an increase in the rate of growth of population would lead to:

• A) growth in total output and growth in output per worker.
• B) growth in total output but no growth in output per worker.
• C) growth in total output but a decrease in output per worker.
• D) no growth in total output or in output per worker.

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Definitions:

Dictator Game Experiments

Behavioral experiments in economics where an individual (the "dictator") is given a sum of money and can choose how to split it between themselves and a second participant who has no influence over the decision.

Sense of Fairness

The natural or developed perception and understanding individuals have towards equity, justice, and impartiality within interactions and exchanges.

Dictator Game

An experimental paradigm in behavioral economics where one player, "the dictator," determines how to split an endowment between themselves and another player.

Behavioral Economists

Investigators who explore how various psychological, cognitive, emotional, cultural, and social factors determine the economic decisions of both individuals and organizations.