Figure 25-1

Multiple Choice

Figure 25-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) .
-Refer to Figure 25-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

A) In the long run,a higher saving rate leads to a higher growth rate of productivity.
B) In the long run,a higher saving rate leads to a higher growth rate of income.
C) Returns to capital become increasingly smaller as the amount of capital per worker increases.
D) All of the above are correct.