Suppose There Are Constant Returns to Scale

question 106

Multiple Choice

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

• A)both output and productivity
• B)output,but not productivity
• C)productivity,but not output
• D)neither productivity nor output

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Definitions:

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual accounts receivable, accounts payable, or other account categories that together constitute a general ledger account.

General Ledger

A comprehensive ledger containing every financial transaction throughout a company's existence.

Special Journal

A ledger used in accounting to record and categorize similar types of transactions for efficiency.

Special Journal

A specialized accounting journal dedicated to recording a specific type of transaction, such as sales or purchases, for efficiency.