As more capital per worker is added, a per worker production function generally becomes:
a. flatter because capital is subject to diminishing marginal returns.
b. flatter because labor is subject to diminishing marginal returns.
c. flatter because capital is subject to increasing marginal returns.
d. steeper because capital is subject to diminishing marginal returns.
Question 2
If the general education level within a country rises significantly over time, it is likely that:
a. the country will move to a different point along its current production possibilities curve.
b. the country's production possibilities curve will not change in any way.
c. the country's production possibilities curve will shift in.
d. the country's production possibilities curve will shift out.
e. the country's production possibilities curve will become convex to the origin.
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