Interpret this statement: “If diminishing returns did not occur, the world could be fed out of a flower pot.”
Please provide the best answer for the statement.
If diminishing returns did not occur, the world could be fed out of a flower pot by simply increasing inputs and labor. The more fertilizer used, the more output would increase. There would be no limit to this process. The same would be true for the number of farmers. The more farmers there are, the more output would be produced. It is the diminishing returns to capital and labor that cause output to eventually decline as more inputs are added to production.
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If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded
A) is greater than 0 percent but less than 10 percent. B) is larger than 10 percent. C) equals 0 percent. D) equals 10 percent. E) More information is needed to determine the magnitude of the change in the quantity demanded.
If the probability of the bad outcome is 0.5, the benefit level of actuarily fair insurance will be half the premium.
Answer the following statement true (T) or false (F)
An increase in expected future income increases ________
A. consumption expenditure, which increases current aggregate demand B. investment, which increases current aggregate supply C. the demand for money, which decreases current aggregate demand D. future consumption expenditure and has no effect on current aggre-gate demand
The consumer price index tires to measure how much consumer incomes must rise in order to maintain a constant
a. level of real GDP. b. ratio of consumption to GDP. c. ratio of net exports to GDP. d. standard of living.