If Capital Is a Variable Input in a Production Process,the

question 96

Multiple Choice

If capital is a variable input in a production process,the law of diminishing marginal returns implies that

• A)total product is minimized.
• B)capital's marginal product is positive and less than one.
• C)total product is maximized.
• D)marginal product of capital eventually decreases.
• E)marginal product of capital is constant.

Identify when a tax on goods is likely to be effective in both reducing consumption and generating revenue.

Understand that the impact of a tax on consumption can depend on the availability of substitutes.

Know the distinction between price elastic and price inelastic demand.

Understand the conditions under which a tax might not reduce consumption of a good.

---

Definitions:

Multiple Measurements

The practice of assessing the same variable or phenomenon using various methods or instruments to ensure accuracy and reliability.

Single Measurements

The act of measuring an entity or phenomenon once, as opposed to taking multiple measurements over time.

Treatment

An intervention or procedure designed to address a medical condition or improve health outcomes.

Randomization

The process of randomly assigning study participants to different groups, such as treatment or control groups, to ensure objectivity and validity.