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Country a and Country B Both Increase Their Capital Stock

Question 79

Multiple Choice

Country A and country B both increase their capital stock by one unit.Output in country A increases by 10 while output in country B increases by 8.Other things the same,diminishing returns implies that country A is


A) richer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units.
B) richer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units.
C) poorer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units.
D) poorer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units.

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