Classical growth theory argued that economic growth was limited because of diminishing marginal productivity.
Answer the following statement true (T) or false (F)
True
Classical growth theory argued that growth was limited because the accumulation of either labor or capital would eventually produce smaller increments in output as diminishing marginal productivity set in.
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Cecilia's Café is in a competitive price-searcher market. Cecilia's is currently producing where average total cost is at its minimum, and Cecilia's is earning a positive economic profit. In the long run we would expect Cecilia's output to
a. decrease and average total cost to be higher. b. decrease and average total cost to be lower. c. remain unchanged as Cecilia's is doing the best it can. d. increase and average total costs to be lower.
Define the marginal propensity to import
What will be an ideal response?
Choices that are best for the society as a whole are choices in pursuit of
A) self-interest. B) answering the "how" question. C) answering the "for whom" question. D) the social interest. E) incentives.
A person's incentive to spend additional money on conspicuous consumption goods will be ________ to the amount and reliability of independent information that people have about his abilities.
A. inversely related B. equal C. positively related D. unrelated