If an Economy with Constant Returns to Scale Were to Double

question 77

Multiple Choice

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

• A)its output would stay the same and so would its productivity.
• B)its output and productivity would increase,but less than double.
• C)its output and productivity would increase by more than double.
• D)None of the above is correct.

---

Definitions:

Formal Writing Style

A style of writing that follows specific conventions and is used in professional, academic, or official contexts.

Controversial Subject

A topic that generates debate and disagreement among people due to differing opinions and values.

Internal Distribution

The process of sharing information, resources, or products within an organization rather than with the public or external entities.

Formal Tone

A style of communication that follows established conventions and is appropriate for professional or serious contexts.