Refer to Scenario 3. Diminishing marginal returns are incurred when output is increased from:
A) 1 to 2 units of output.
B) 2 to 3 units of output.
C) 3 to 4 units of output.
D) 4 to 5 units of output.
C
You might also like to view...
Financial capital
A) depends on saving and borrowing decisions. B) is accumulated investment. C) depreciates each year. D) is another name for the machines and tools that businesses buy. E) is independent of physical capital.
The interest-rate-based monetary policy transmission mechanism argues that an increase in the money supply
A) has no effect on aggregate demand but reduces long-run aggregate supply. B) has no effect on aggregate demand but increases short-run aggregate supply. C) causes interest rates to fall, which causes an increase in planned investment, and an increase in aggregate demand. D) causes the inflation rate to decline, which causes an increase in household consumption spending and an increase in aggregate demand.