If the Capital Stock Remains Fixed While the Supply of Labor

question 142

Multiple Choice

If the capital stock remains fixed while the supply of labor increases, it is likely that

• A) the productivity of labor will rise.
• B) the productivity of labor will fall.
• C) the productivity of labor will not change.
• D) output per capita will rise.

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Definitions:

Schema

A cognitive framework or concept that helps organize and interpret information, based on experience, to make sense of the world.

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.

Circular Reaction

A repetitive action that achieves a desired outcome, often seen in the developmental stages of infants as they learn to interact with their environment.

Cognitive Schema

A mental structure that represents some aspect of the world, organizing categories of information and the relationships among them, aiding in understanding and predicting the world.