Diminishing returns means that
A) each additional unit of labor produces successively more real GDP.
B) hiring more labor must lower the real wage rate.
C) each extra unit of real GDP produced requires less labor.
D) hiring more labor results in less real GDP.
E) each additional unit of labor produces successively less real GDP.
E
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Which of the following assets is almost riskless?
A) Common stocks B) Long-term corporate bonds C) U.S. Treasury bills D) Long-term government bonds E) Apartment buildings
Suppose that some country had an adult population of about 50 million, a labor-force participation rate of 60 percent, and an unemployment rate of 5 percent. How many people were unemployed?
a. 1.425 million b. 1.5 million c. 2.5 million d. 5 million
Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:
A. the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks. B. the $12 she spent on the umbrella, food and drinks. C. the value she places on seeing the movie. D. only $0 because she would have spent $12 to go to the movie.
Which of the following examples will have a fall in revenue?
a. When the price of hamburger buns decreases 10 percent, sales increase 12 percent. b. When the price of ice cream decreases 4 percent, sales increase 8 percent. c. When the price of lemons decreases 5 percent, sales increase 3 percent. d. When the price of salsa decreases 8 percent, sales increase 8 percent.