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:

Dual Agency

A real estate arrangement where one agent represents both the buyer and the seller in a transaction.

Apparent Authority

The ability of an agent to bind a principal where the principal has not notified third parties of the restricted or terminated authority of the agent.

Principal

A person on whose behalf an agent acts.

Terminated

The end of an employee's employment due to dismissal or discharge by the employer, often for cause or due to organizational changes.