Suppose That an Increase in Capital Per Hour Worked from $15,000

question 95

Multiple Choice

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

• A)by less than $500
• B)by exactly $500
• C)by more than $500 but less than $5,000
• D)by more than $5,000 but less than $20,000