Question

- /5 pts 11:59 PM CST Productivity: $40,000+ 20,000 --- $10.000 30.000 Physical capital per worker Imare Description In the relationship depicted by the curve Productivity, which of the following statements are true regarding the relationship between physical capital per worker and real GDP per capital for both countries? These countries experience increasing returns to physical capital per worker with technology and human capital per worker being forced These countries experience diminishing returns to physical capital per worker with technology and human capital per worker bened These countries experience diminishing returns to physical capital per worker with technolory and physical capital per worker being fored These countries experience increasing returns to physical capitale worker with physical and human capital per worker being foced.

Answer 1

This curve reflecting the relationship between physical capital per worker and Real GDP per worker is drawn holding human capital per worker and technology fixed. Both countries experience diminishing returns to physical capital since in both countries equal increments in physical capital per worker—holding human capital per worker and technology constant—will result in smaller and smaller increases in real GDP per worker.Therefore,Option (B) is correct. These countries experience diminishing returns to physical capital per worker with technology and human capital per worker being fixed.

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