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:

Process

A sequence of measures or procedures executed to accomplish a specific goal.

Information

Data that is accurate and timely, specific and organized for a purpose, presented within a context that gives it meaning and relevance.

Representative Power

The formal right conferred by the firm to speak for and to a potentially important group.

Personal Power

Describes an individual's ability to influence or control the circumstances of their own or others' lives.