Consider an Aggregate Production Function Y = F(K,L)that Displays Diminishing

question 122

Multiple Choice

Consider an aggregate production function Y = F(K,L) that displays diminishing marginal returns to labour.If the amount of capital is held constant and the amount of labour used in production is increasing,then

• A)each additional unit of labour will add less to total output than the previous unit of labour.
• B)each additional unit of labour will add more to total output than the previous unit of labour.
• C)total output increases in proportion to the increases in labour.
• D)there are increasing returns to scale.
• E)there are constant returns to scale.

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Definitions:

Overregularization

The application of regular grammatical rules (e.g., to create past tense and plurals) to irregular verbs and nouns.

Grammatical Rules

The structured guidelines that govern the composition of clauses, phrases, and words in any given natural language.

Private Speech

Vygotsky’s concept of the ultimate binding of language and thought. Private speech originates in vocalizations that may regulate the child’s behavior and become internalized by age 6 or 7.

Cognitive Development

The growth of brain function and neuropathways, resulting in the ability to think, learn, and remember.