Suppose that an increase in capital per hour worked from 15000 to 20000

Suppose that an increase in capital per hour worked

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7) Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500. If capital per hour worked increases further to $25,000, by how much would you expect real GDP per hour worked to increase if there are diminishing returns?A) by less than $500B) by exactly $500C) by more than $500 but less than $5,000D) by more than $5,000 but less than $20,000Answer: ADiff: 2 Type: MC Page Ref: 182-183Topic: Per-Worker Production FunctionLearning Outcome: 7.2 Use the economic growth model to explain why growth rates differ across countriesAACSB: Reflective ThinkingSpecial Feature: None62© 2015
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Chapter 7 Long-Run Economic Growth: Sources and PoliciesFigure 7.18) Refer to Figure 7.1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from A) Ato C.B) Bto C.C) Cto D.D) Dto C.Answer: ADiff: 1 Type: MC Page Ref: 182-184Topic: Per-Worker Production FunctionLearning Outcome: 7.2 Use the economic growth model to explain why growth rates differ across countriesAACSB: Analytic SkillsSpecial Feature: None9) Refer to Figure 7.1. Technological change is illustrated in the per-worker production function in the figure above by a movement from A.D) Dto C.63© 2015
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Chapter 7 Long-Run Economic Growth: Sources and Policies10) Refer to Figure 7.1. Using the per-worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from A.D) Dto Cto B.11) Refer to Figure 7.1. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy. If the United States decided to double its support of university research, this would cause a movement from A.D) Dto C.
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