The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:
A. decreasing output per unit of capital.
B. diminishing returns to capital.
C. increasing returns to capital.
D. increasing average capital productivity.
Answer: B
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The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). If the price were $2.50, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $0
Suppose Julia and Zach are the only consumers of milk. Julia's demand for milk is defined as QdJulia = 12 - 3P at prices below $4 and zero for prices above $4. Zach's demand for milk is defined as QdZach = 10 - 2P at prices below $5 and zero for prices above $5. Market demand when price is $4 is:
A. QdMarket = 12 - 3P. B. QdMarket = 10 - 2P. C. QdMarket = 22 - 3P. D. QdMarket = 22 - 5P.
For a given domestic and foreign price level, an increase in the nominal exchange rate ________ the real exchange rate.
A. may either increase or decrease B. increases C. decreases D. offsets any change in
What is the primary reason that the highest quintile's share of the national income increased very rapidly over the last 20 years?
A. Poor people are lazy and do not want to work. B. All of our jobs have been shipped overseas. C. Tax cuts on the property owners and high income citizens. D. High cost of health care.