An Economy's Production Function Has the Constant-Returns-To-Scale Property

question 112

Multiple Choice

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

• A)stay the same.
• B)increase by exactly 50 percent.
• C)increase by exactly 100 percent.
• D)increase,but not necessarily by either 50 percent or 100 percent.

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Definitions:

Market for Human Organs

The controversial concept or practice involving the buying and selling of human organs for transplantation, often debated for ethical and moral reasons.

Volunteer-Donor System

A system in which goods, services, or time are given by volunteers or donors without financial compensation.

Market-Based System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Human Organs

Parts of the human body that perform vital functions necessary for life, such as the heart, liver, and kidneys, which can sometimes be medically transplanted.