Diminishing returns to labor occur for two primary reasons: 1) as we keep adding new workers, it becomes increasingly difficult to obtain productivity gains through additional specialization; and 2) each additional worker we add has less land and capital to work with

In a logarithmic scale ________

A) the ratio of capital to labor is constant B) the vertical axis lies along the horizontal axis C) equal distances reflect the same percentage change D) values along the vertical axis correspond to the square root of values along the horizontal axis

When a shortage exists in a market

A) the market clearing price is above equilibrium and market forces will cause the price to fall. B) the quantity demanded is less than the quantity supplied at the existing price. C) the current price is below the market clearing price and the price will rise. D) the quantity supplied is greater than the quantity demanded at the current price.