The Soviet Union Consistently Increased the Amount of Capital Available

question 183

Multiple Choice

The Soviet Union consistently increased the amount of capital available to its workers,but found that increases in capital resulted in progressively smaller and smaller increases in GDP per worker.This phenomenon is referred to as

• A)a rising standard of living.
• B)diminishing returns to capital.
• C)new growth theory.
• D)a shift of the per-worker production function.

---

Definitions:

Market Price

The contemporary selling or buying price for an asset or service.

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit under given conditions.

Incur A Loss

The situation in which the costs of operating a business exceed the revenues, leading to negative profits.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.