The law of diminishing returns occurs because
A) the marginal product of an additional worker is greater than the marginal product of the previous worker.
B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital.
C) total production decreases as more of the variable inputs are used.
D) adding more and more workers leads to a decrease in the quantity of capital.
B
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Which of the following is an example of an automatic fiscal policy action?
A) increased unemployment payments resulting from higher unemployment B) an increase in spending on defense goods resulting from increased world tensions C) an increase in the tax rate resulting from a desire to shrink the budget deficit D) a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession E) None of the above answers is correct.
The Fixed Effects regression model
A) has n different intercepts. B) the slope coefficients are allowed to differ across entities, but the intercept is "fixed" (remains unchanged). C) has "fixed" (repaired) the effect of heteroskedasticity. D) in a log-log model may include logs of the binary variables, which control for the fixed effects.
Economists believe that the optimal level of pollution is zero
a. True b. False Indicate whether the statement is true or false
Time deposits of $100,000 or more are:
A. a component of M1. B. a component of M2 but not of M1. C. a component of M1 but not of M2. D. not a component of M1 or M2.