The marginal product of capital may be decreasing because
A) capital depreciates over time
B) each additional machine has fewer workers to operate it
C) new machines embody a different technology than old machines
D) at some point the economy reaches full capacity, beyond which output cannot expand
E) machines are often firm-specific, with little resale value to another firm
Correct Answer:
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Q2: Reconstruction in Europe following World War II
Q3: The best long run growth strategy for
Q4: A steady state may be defined as
A)
Q5: When interest rates rise,
A) investment increases
B) investment
Q6: The diminishing marginal product of capital implies
A)
Q7: Interest rates are most often determined by
A)
Q8: By definition,the capital stock of a country
Q9: With few exceptions,the most important element of
Q10: For the economy as a whole,the relationship
Q11: The difference between "gross" and "net" in
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