For This Question,assume That the Production Function Exhibits the Same

question 15

Multiple Choice

For this question,assume that the production function exhibits the same characteristics as those presented in the textbook.Based on these characteristics (i.e.,assumptions) ,successive and equal increases in capital per worker will cause which of the following to occur?

• A)output per worker will decline.
• B)output per worker will not change.
• C)output per worker will increase by a constant amount.
• D)output per worker will increase by a larger amount.
• E)none of the above

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Definitions:

Promissory Note

A financial instrument comprising a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Financial Asset

An intangible asset representing a claim on future benefits or returns, examples include stocks, bonds, and bank deposits.

Real Asset

Physical or tangible assets that have value due to their substance and properties.

Pass-Through Mortgage Security

A type of asset-backed security that is secured by a pool of mortgage loans, where payments from borrowers pass through to investors.