An Increase in Capital Will Increase Real GNP Per Person

question 28

Multiple Choice

An increase in capital will increase real GNP per person

• A)more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
• B)more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
• C)less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
• D)less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.

Technological Advance

The introduction and application of new technologies and methods that improve productivity and efficiency.

Unemployment

A situation where individuals who are able and willing to work are unable to find jobs.

Office Of Management

A governmental organization responsible for producing the President's budget, among other responsibilities related to federal budget and management.