Question : 31) According to the law of diminishing returns, an additional : 1240970

31) According to the law of diminishing returns, an additional unit of

A) capital produces more output than an additional unit of labor.

B) labor decreases output.

C) capital produces the same amount of output as an additional unit of labor.

D) capital produces more output than the previous unit.

E) capital produces less output than the previous unit.

32) The shape of the productivity curve reflects the

A) effects of capital accumulation.

B) effects of technological progress.

C) change in labor productivity as human capital increases.

D) law of diminishing marginal returns.

E) effects of population growth.

33) The productivity curve is a relationship between

A) real GDP per hour of labor and capital per hour of labor, with technology held constant.

B) nominal GDP per hour of labor and capital per hour of labor, with technology held constant.

C) real GDP per hour of labor and capital per hour of labor whenever technological growth occurs.

D) real GDP per unit of capital and capital per hour of labor, with technology held constant.

E) capital per hour of labor and technological growth.

34) The productivity curve is a relationship between ________ and ________.

A) real GDP; hours of labor

B) real GDP; capital

C) real GDP per hour of labor; capital

D) capital per hour of labor; labor per hour of capital

E) real GDP per hour of labor; capital per hour of labor

35) A diagram of a productivity curve has

A) real GDP per hour of labor on the y-axis and capital per hour of labor on the x-axis.

B) real GDP per hour of labor on the y-axis and hours of labor on the x-axis.

C) capital per hour of labor on the y-axis and real GDP per hour of labor on the x-axis.

D) real wages per hour on the y-axis and real GDP per hour of labor on the x-axis.

E) real GDP per hour of labor on the y-axis and real wages per hour on the x-axis.

36) The productivity curve

A) has a positive slope.

B) has a negative slope.

C) is vertical.

D) is horizontal.

E) is U-shaped.

37) Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce. Using the productivity curve graphed, this innovation would be described as

A) a movement upward along the curve.

B) a movement downward along the curve.

C) a shift of the curve upward.

D) a shift of the curve downward.

E) no change to the productivity curve.

38) If capital per hour of labor increases, GDP per hour of labor

A) decreases for a given level of technology.

B) increases because the level of technology advances.

C) increases for a given level of technology.

D) decreases because the level of technology decreases.

E) changes only if technology also advances.

39) If capital per hour of labor decreases, real GDP per hour of labor

A) decreases because the level of technology decreases.

B) increases because the level of technology increases.

C) increases for a given level of technology.

D) decreases for a given level of technology.

E) changes only if technology also advances.

40) If the level of technology rises, GDP per hour of labor

A) increases for any level of capital per hour of labor.

B) increases because the level of capital per hour of labor increases.

C) decreases for a given level of capital per hour of labor.

D) decreases because the level of capital per hour of labor decreases.

E) does not change because GDP increases only when capital or labor increases.