A country faces diminishing marginal returns when increasing it's capital stock. If this country added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you expect to happen if they had added 2,000 units of capital instead? O GDP would increase by another $500 per person O GDP would increase by less than another $500 per person GDP would increase by more than another $500 per person O It is impossible to tell what would happen What is a potential downside of using patents to promote the creation of new technology? O Without a market test, patents might be given to technology which ends up being useless. O Government money may be directed towards unproductive goals. O It slows the spread and development of those ideas by restricting competition. O They prohibit competition forever.
A country faces diminishing marginal returns when increasing it's capital stock. If this country added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you expect to happen if they had added 2,000 units of capital instead? O GDP would increase by another $500 per person O GDP would increase by less than another $500 per person GDP would increase by more than another $500 per person O It is impossible to tell what would happen What is a potential downside of using patents to promote the creation of new technology? O Without a market test, patents might be given to technology which ends up being useless. O Government money may be directed towards unproductive goals. O It slows the spread and development of those ideas by restricting competition. O They prohibit competition forever.
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 4P
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