In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third.Assuming diminishing returns,the decrease in population should have
A)increased productivity and real GDP per person.
B)increased productivity but decreased real GDP per person.
C)increased real GDP per person,but decreased productivity.
D)decreased productivity and real GDP per person.

Question

Quizplus · Accepted Answer

With diminishing returns, a decrease in population should increase productivity, as there are fewer people to share resources and thus more resources available per person. This increased productivity should also lead to an increase in real GDP per person. Therefore, choice A is the best answer.

In the Fourteenth Century It Is Estimated That Deaths Resulting