In Figure 21

question 44

Multiple Choice

In Figure 21.1,diminishing marginal returns first occur with the

• A)Fifth worker.
• B)Fourth worker.
• C)Third worker.

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically marked by the absence of involuntary unemployment.

Keynesian Model

An economic theory proposed by John Maynard Keynes, suggesting that aggregate demand is the primary driving force in the economy, and advocating for government intervention to manage economic fluctuations.

Classical Theory

An economic theory that emphasizes the importance of free markets, competition, and the belief that markets, through the forces of supply and demand, will naturally regulate the economy.

Employment

The condition of having a paid job; the total number of people currently employed in the economy.