The Increase in Real Output Produced by Using One Additional

question 43

Multiple Choice

The increase in real output produced by using one additional unit of capital in production is called

• A)the rental cost of capital
• B)the marginal product of capital
• C)the value of capital
• D)capital improvement
• E)capital consumption allowances

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Production Possibilities

Different mixtures of products and services that an economy can generate with its current resources and technological capabilities.

Fish

Aquatic animals that are primarily gilled and often harvested for food, sport, or aquariums.

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, often found in coastal regions.