The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of:
a. negative response
b. inverse return to labor.
c. diminishing returns.
d. demand.
c
You might also like to view...
Many unsuccessful, low performing LDCs have all of the following characteristics except
a. political instability b. reliance on custom and traditions c. absence of infrastructure d. high population growth e. acceptance of new technology
The Fed could sell bonds in the open market in an effort to keep interest rates constant when
A. The discount rate increases. B. The reserve requirement increases. C. Money demand decreases. D. Money demand increases.
Moral hazard is best described as
a. an action by an individual that endangers others. b. an action that puts one's salvation at risk. c. the presence of insurance increasing risk taking behavior. d. vigilance by individuals to keep total insurance claims at a minimum to keep rates low.
If savings exceeds investment at full employment, demand will fall short of total output.
Answer the following statement true (T) or false (F)