Increasing Returns to Scale Refers to

question 2

Multiple Choice

Increasing returns to scale refers to

• A) more total factor productivity leading to greater aggregate output.
• B) lower real interest rates leading to greater aggregate output.
• C) output doubles as all inputs double.
• D) output more than doubles as all inputs double.
• E) marginal product of labour diminishes when quantity of capital increases.

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Definitions:

Human Labor

Refers to the work performed by individuals that contributes to the production of goods and services in an economy.

Environmental Concerns

Issues related to the impact of human activities on the natural environment, including pollution, climate change, and loss of biodiversity.

Enterprise Compact

An agreement or understanding between employers and employees within a company aiming to improve work conditions.

Representation

The act of acting or speaking on behalf of someone else or a group, particularly in decision-making processes or negotiation settings.