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

Question

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

Quizplus · Accepted Answer

When the capital utilization rate increases, it means that machines are being used more hours per period. This does not necessarily lead to a decrease in GDP, and it does not affect the number of machines in use. Therefore, the best choice is B.

When the Capital Utilization Rate, , Increases Then