When the capital utilization rate, , increases then:
A)GDP increases.
B)machines are in use more hours per period.
C)(hours per period)•(number of machines) increases.
D)all of the above.

Question

When the capital utilization rate,  , increases then:
A)GDP increases. 
B)machines are in use more hours per period. 
C)(hours per period)•(number of machines) increases. 
D)all of the above.

Quizplus · Accepted Answer

When the capital utilization rate increases, it means that machines are being used more efficiently and for more hours. This results in an increase in GDP as well as an increase in the total number of hours worked by the machines. Therefore, all of the above options are correct.

When the Capital Utilization Rate, , Increases Then