If labor is fixed at 5 units, how much does the second unit of capital add to total output? 
Amount of total output produced from various combinations of labor and capital.
A. 490
B. 390
C. 100
D. 50
E. none of the above
Answer: C
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The principal of a loan is the:
A. original amount of the loan. B. set of rules and conditions borrowers agree to when taking out a loan. C. set of rules and conditions savers agree to when agreeing to let someone borrow their money. D. original amount that people want to borrow.
Consider a small hair styling salon. List some examples of implicit costs of this business
The law of diminishing marginal productivity implies that increasing only one input will:
A. lead to smaller and smaller increases in output. B. lead to larger and larger increases in output. C. not increase output. D. lead to identical increases in output.