Diminishing returns means that
A) each additional unit of labor produces successively more real GDP.
B) hiring more labor must lower the real wage rate.
C) each extra unit of real GDP produced requires less labor.
D) hiring more labor results in less real GDP.
E) each additional unit of labor produces successively less real GDP.
E
You might also like to view...
The negative correlation between the vacancy rate and the unemployment rate is called
A) The Laffer curve. B) The Phillips curve. C) The Fisher relation. D) The Beveridge curve.
Suppose the government levies a "fat tax" on naturally-sweetened carbonated beverages to try to reduce the number of overweight children. If the tax revenues pay for the health problems of overweight children, the tax would satisfy the
a. ability-to-pay principle. b. benefits principle. c. vertical-equity principle. d. horizontal-equity principle.