The idea of "diminishing returns" means that real GDP ________ as the quantity of labor increases
A) increases at a slower rate
B) decreases at a slower rate
C) increases at a faster rate
D) decreases at a faster rate
E) does not change
A
You might also like to view...
Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level?
A) classical growth theory B) neoclassical growth theory C) new growth theory D) None of the above because all predict that there will be a sustained rise above the subsistence level.
Why does the American Medical Association work to limit the number of new physicians licensed each year?
Fiscal and monetary policies are most effective in reducing inflation when the aggregate
A. Supply curve is horizontal. B. Supply curve is upward-sloping but not vertical. C. Supply curve is vertical. D. Demand curve is vertical.
If a particular bank regularly announces changes in its interest rate schedules before its competitors, who then set rates very close to those announced by that bank, this could be described as:
A. Markup pricing B. Predatory pricing C. Price leadership D. Explicit price collusion