In a Short-Run Production Process, a Diminishing Marginal Product of Labor

question 157

Multiple Choice

In a short-run production process, a diminishing marginal product of labor explains why marginal cost is

• A) positive and rising.
• B) positive but falling.
• C) zero.
• D) negative and falling.

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Definitions:

Aggregate Demand

The combined need for all commodities and services in an economy, quantified at a set price level and within a specific period.

Federal Budget Surplus

A situation where the government's income exceeds its spending, resulting in excess funds for a given fiscal period.

National Debt

The aggregate sum of funds that a nation's government has accrued in debt and remains liable for.

Federal Budget Deficit

The shortfall in the federal government's revenue compared to its expenditures over a specified period, typically a fiscal year.