Diminishing Returns to Labor Exists

question 14

Multiple Choice

Diminishing returns to labor exists

• A)in any economy.
• B)only in an economy where most of the output comes from the agricultural sector.
• C)only in an economy with no technological growth.
• D)only in a pre-Industrial Revolution economy.
• E)only in an economy with no capital and technology.

---

Definitions:

Priming

The process by which exposure to a stimulus in the environment increases the salience of a schema.

Counterfactual Thinking

The mental process of imagining alternative outcomes to events that have already occurred.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the impact of situational factors on other people's behavior.