According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:
A. increases output at a constant rate.
B. increases output at an increasing rate.
C. decreases output at an increasing rate
D. increases output at a decreasing rate.
Answer: D
You might also like to view...
Pete's Package Delivery Service currently makes deliveries only within the state, but now decides to expand the scale of its operation by serving the neighboring state as well. It is likely to find
a. total variable costs decline as diminishing returns set in b. total fixed costs decline as more trucks cover a wider area c. total variable costs rise as more fuel and drivers are needed d. the price of hiring a worker falls as more workers are hired e. profits rise as total costs remain constant
Refer to the above figure. At a price of $6, excess quantity supplied equals
A. 15. B. 12. C. 0. D. infinity.
If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because
A. the rate at which capacity can be expanded increases indefinitely. B. there are limits to how long workers can work long hours and capital can go without proper maintenance. C. all the unemployed would eventually be hired. D. the long-run aggregate supply curve is horizontal.
The amount of time that it takes between recognizing an economic problem and implementing policy to solve it is
A. the artificial intelligence lag. B. the recognition time lag. C. the effect time lag. D. the action time lag.