If an Economy with Constant Returns to Scale Were to Double

question 77

Multiple Choice

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

• A)its output would stay the same and so would its productivity.
• B)its output and productivity would increase,but less than double.
• C)its output and productivity would increase by more than double.
• D)None of the above is correct.

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Definitions:

Demographic Segmentation

The division of a market into subsets based on variables such as age, gender, income, education, and family size for marketing purposes.

Geographic Component

Refers to the elements related to the physical location and spatial characteristics crucial for analysis in geography and related disciplines.

Household Size

The number of individuals living together in a single home environment, often used in market segmentation and demographic studies.

Segment Formation

The process of dividing a broad market into distinct subsets of consumers with common needs or characteristics, for targeted marketing.