When a production function exhibits a diminishing, but positive, marginal product of labor,
a. output increases, but at an increasing rate, as more workers are employed.
b. output increases, but at a decreasing rate, as more workers are employed.
c. output declines as more workers are employed.
d. the effects on marginal product are ambiguous.
b
You might also like to view...
In new growth theory, growth in real GDP per person occurs because
i. human capital grows indefinitely. ii. technology advances as a result of choices individuals make. iii. profit incentives encourage technological change. A) i only B) ii only C) iii only D) both i and iii E) i, ii, and iii
Fill in the blank: National income accountants define a(n) ________ good as something purchased with the goal of reselling it or further processing or remanufacturing it into another sellable good
A) scarce B) intermediate C) final D) finished E) completed
Which part of this definition for GDP is incorrect? GDP measures the:
a. Market value of, b. All final and intermediate goods and services, c. Produced, d. By domestically owned or foreign-owned resources, e. Over a given period of time.
The price system is based on the law of __________________.
Fill in the blank(s) with the appropriate word(s).