Indicate whether the following statement is TRUE or FALSE and explain your answer: ‘Consider three inputs of production: labour, physical capital and natural resources, and an economy with decreasing returns to scale. If you increase all three inputs x times then the total gross domestic product (GDP) in the economy will increase exactly x times, but GDP per capita will decrease.’
Indicate whether the following statement is TRUE or FALSE and explain your answer: ‘Consider three inputs of production: labour, physical capital and natural resources, and an economy with decreasing returns to scale. If you increase all three inputs x times then the total gross domestic product (GDP) in the economy will increase exactly x times, but GDP per capita will decrease.’
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section: Chapter Questions
Problem 6WNG
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Indicate whether the following statement is TRUE or FALSE and explain your answer: ‘Consider three
inputs of production: labour, physical capital and natural resources, and an economy with decreasing
returns to scale. If you increase all three inputs x times then the total
the economy will increase exactly x times, but GDP per capita will decrease.’
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