Referring to Figure 4.1, the increase in output from point B to C is greater than the increase in output from point C to D because 
A. better workers are usually hired after the earlier ones.
B. more workers always produce more.
C. eventually workers are up against the fact that there are fixed inputs and more workers do not add as much.
D. a small number of workers cannot take as good advantage of the division of labor as a larger number.
Answer: C
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A government's policy to lower the exchange rate is called ____________
a. an import control b. sinking a floating exchange rate c. appreciating the currency d. floating the exchange rate e. devaluation
Government programs that take money from high-income people and give it to low-income people typically
a. improve economic efficiency by reducing poverty. b. reduce economic efficiency because they distort incentives. c. have no effect on economic efficiency because they both reduce poverty and distort incentives. d. sometimes improve, sometimes reduce, and sometimes have no effect on economic efficiency.