If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits
a. diminishing profitability.
b. increasing returns to scale.
c. increasing marginal product.
d. diminishing marginal product.
d
You might also like to view...
If Q is total real output, K is capital in use, and L is labor employed, then _____ is the formula to calculate the productivity of labor
a. K/L b. L/K c. Q/L d. Q/K e. (Q + K)/L
Which of the following properly describes the interest-rate effect that helps explain the slope of the aggregate-demand curve?
a. As the money supply increases, the interest rate falls, so spending rises. b. As the money supply increases, the interest rate rises, so spending falls. c. As the price level increases, the interest rate falls, so spending rises. d. As the price level increases, the interest rate rises, so spending falls.
The inflation rate is the annual percentage change in the average price level.
Answer the following statement true (T) or false (F)
In the Cambridge approach, if k is .5, total output is $50 billion, and the money supply is $100 billion, the price level is
A) 0.5. B) 4.0. C) 3.0. D) 10.0.