The Flattening Out of the Production Function Is Due to

question 48

Multiple Choice

The flattening out of the production function is due to

• A)the declining opportunity cost of labor.
• B)the increasing scarcity of labor.
• C)increasing returns to labor.
• D)all other factors being held constant.
• E)the increasing specialization of labor.

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Definitions:

Productivity

An indicator of production effectiveness, typically shown as the proportion of outputs versus inputs in the manufacturing process.

Wage Differentials

The variation in pay rates between different sectors, roles, or geographical locations, often influenced by skill levels, supply and demand, and living costs.

Discrimination

Unfair treatment or prejudice against individuals or groups based on characteristics such as race, gender, or age.

Wage Rates

The standard amount of compensation an employee receives from an employer in exchange for performing a specific task or job, usually expressed per hour or year.