What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)?
a. It implies that the slope of the curve increases as the number of workers employed increases.
b. It implies that the slope of the curve becomes negative as the number of workers employed increases.
c. It implies that the slope of the curve decreases (or becomes flatter) as the number of workers employed increases.
d. It keeps the slope the same throughout.
e. It has nothing to do with the slope of the aggregate production function.
C
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The standard cut-off for cost per QALY is
a. equal to per capita income b. 2 times per capita income c. 3 times per capita income d. 4 times per capita income e. 5 times per capita income
Consumer spending is an injection in the circular flow of income and spending.
Answer the following statement true (T) or false (F)
A spending shock typically involves a dramatic reduction in spending in virtually all sectors of the economy simultaneously
a. True b. False
Those that lose from an increase in the minimum wage are
A. workers that are laid off. B. all workers. C. those workers who keep their jobs. D. consumers who pay lower prices for goods.