An Earthquake Destroys a Good Portion of the Capital Stock

question 90

Multiple Choice

An earthquake destroys a good portion of the capital stock.How would you expect this to affect the capital-labor ratio in the long run? There would be

• A)a rightward movement along the saving-per-worker curve and an increase in the capital-labor ratio.
• B)no change in the long-run capital-labor ratio.
• C)a downward shift in the saving-per-worker curve and a decrease in the capital-labor ratio.
• D)a leftward movement along the saving-per-worker curve and a decrease in the capital-labor ratio.

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Definitions:

Muscle

Tissues in the body that have the ability to contract, making movement possible.

Epithelial

Relating to epithelium, a tissue composed of a layer of cells that line the surfaces and cavities of organs and vessels throughout the body.

Connective

Referring to connective tissue, which supports, binds together, and protects tissues and organs in the body.

Nerve

A bundle of fibers that transmits electrical impulses between the brain and parts of the body, facilitating communication and response.