The More Any Given Resource Is Applied to Production,the Lower

question 2

Multiple Choice

The more any given resource is applied to production,the lower the marginal gain in output,until a point is reached where the additional inputs produce no additional output.This is referred to as

• A)the point of no return.
• B)the law of diminishing returns.
• C)supply and demand.
• D)network inelasticity.
• E)the invisible hand.

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country's borders.

Depression

A deep and prolonged business downturn; the last one occurred in the 1930s.

Velocity of Circulation

The rate at which money moves through the economy, from transactions of individuals and businesses.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively looking for employment.