Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 25, Problem 4MCQ
To determine
To find:
The option that correctly explains the effect of an increase in capital per hour of labor due to the increase in real GDP per hour of labor.
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Students have asked these similar questions
For a given level of technology, the level of labor productivity would increase in all of the following situations except when:
A. there is an increase in natural resources per worker
B. there is an increase in human capital per worker
C. there is an increase in physical capital per worker
D. there is an increase in labor
Why does adding capital to a production function make the economy more productive? What are diminishing returns to capital? How does technology affect productivity and growth?
Consider the per-worker production function graph.
If there is an increase in capital per hour worked, holding technology constant, then
A. there is a movement from A to B.
B. there is a movement from A to C.
C. there is a movement from B to D.
D. there is a movement from D to C.
If there is an increase in technology, holding constant the quantity of capital per hour worked, then
A. there is a movement from C to D.
B. there is a movement from A to B.
C. there is a movement from D to B.
D. there is a movement from A to C.
C
Real GDP per hour worked (Y/L)
10-
Y/L2
Y/L₁
Per-Worker
Production Function
C
3
B
Per Worker
Production Function 1
K/L₁
K/L₂
Capital per hour worked (K/L)
10
Chapter 25 Solutions
Foundations of Economics (8th Edition)
Ch. 25 - Prob. 1SPPACh. 25 - Prob. 2SPPACh. 25 - Prob. 3SPPACh. 25 - Prob. 4SPPACh. 25 - Prob. 5SPPACh. 25 - Prob. 6SPPACh. 25 - Prob. 7SPPACh. 25 - Prob. 8SPPACh. 25 - Prob. 9SPPACh. 25 - Prob. 10SPPA
Ch. 25 - Prob. 11SPPACh. 25 - Prob. 12SPPACh. 25 - Prob. 1IAPACh. 25 - Prob. 2IAPACh. 25 - Prob. 3IAPACh. 25 - Prob. 4IAPACh. 25 - Prob. 5IAPACh. 25 - Prob. 6IAPACh. 25 - Prob. 7IAPACh. 25 - Prob. 8IAPACh. 25 - Prob. 9IAPACh. 25 - Prob. 10IAPACh. 25 - Prob. 1MCQCh. 25 - Prob. 2MCQCh. 25 - Prob. 3MCQCh. 25 - Prob. 4MCQCh. 25 - Prob. 5MCQCh. 25 - Prob. 6MCQCh. 25 - Prob. 7MCQCh. 25 - Prob. 8MCQ
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