"When Workers Already Have a Large Quantity of Capital to Use

question 23

Multiple Choice

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

• A)represents an unconventional view of the production process.
• B)is an assertion that capital is subject to increasing returns.
• C)is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant.
• D)All of the above are correct.

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Definitions:

Centrally Planned Economy

An economic system where the government makes all decisions about what goods and services are produced, how they are produced, and who receives them.

Profits

The financial gain obtained from the difference between the amount earned and the amount spent in buying, operating, or producing something.

Corporation

A legal entity (“person”) chartered by a state or the federal government that is distinct and separate from the individuals who own it.

Personal Responsibility

The idea that an individual is accountable for their actions and wellbeing, including making decisions that affect their life and those around them.