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If Adding an Initial 100 Billion Labor Hours Per Year

Question 43

Multiple Choice

If adding an initial 100 billion labor hours per year increases real GDP by $3 trillion,diminishing returns informs us that an additional 100 billion labor hours per year will increase real GDP by


A) exactly $3 trillion.
B) less than $3 trillion.
C) more than $3 trillion.
D) either exactly $3 trillion or by less than $3 trillion,depending on whether the real wage rate remains constant or rises.
E) some amount but there is not enough information to tell by how much.

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