MACROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253092
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Question
Chapter 8, Problem 11DQ
To determine
Relation between the fertility rate and growth and the impact of inverse dependency ratio on the growth of real GDP.
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A country faces diminishing marginal returns when increasing it's capital stock. If this country
added 1,000 units of capital last year and saw their GDP rise by $500 per person, what would you
expect to happen if they had added 2,000 units of capital instead?
O GDP would increase by another $500 per person
O GDP would increase by less than another $500 per person
O GDP would increase by more than another $500 per person
O It is impossible to tell what would happen
What is a potential downside of using patents to promote the creation of new technology?
Without a market test, patents might be given to technology which ends up being useless.
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What is the law of diminishing marginal returns?
A country faces diminishing marginal returns when increasing it's capital stock. If this country
added 100 units of capital last year and saw their GDP rise by $1,000 per person, what would you
expect to happen if they had added 200 units of capital instead?
O It is impossible to tell what would happen
GDP would increase by less than another $1,000 per person
GDP would increase by another $1,000 per person
GDP would increase by more than another $1,000 per person
Chapter 8 Solutions
MACROECONOMICS W/CONNECT
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