Between 1990 and 2010, World Exports Have

question 26

Multiple Choice

Between 1990 and 2010, world exports have

• A) declined relative to world output.
• B) increased, but at a slower rate than the growth of world output.
• C) remained relatively constant despite growing world output.
• D) increased at a faster rate than the growth of world output.

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Definitions:

Diminishing Marginal Returns

A principle stating that as one factor of production increases, while others stay constant, the additional output will eventually decline.

Marginal Cost

The expansion in total financial commitment from producing one extra unit of a product or service.

Total Cost

The aggregate expense incurred in the manufacture or delivery of a product, including all overheads.

Marginal Cost Curve

The marginal cost curve graphically represents the cost incurred in producing one additional unit of a good.