Which Statement Accurately Describes What Is Happening Along a Typical

question 35

Multiple Choice

Which statement 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.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Dark Ages (about 1200 BCE) to the end of antiquity (circa 600 AD) and contributed significantly to language, politics, educational systems, philosophy, science, and the arts.

Good Society

A concept or vision of a society that is just, equitable, inclusive, and provides a high quality of life for all its members.

Distributive Justice

The ethical principle concerned with the fair allocation of resources and wealth among all members of a society.