According to the Law of Diminishing Returns, Along the Aggregate

question 82

Multiple Choice

According to the law of diminishing returns, along the aggregate production function, an additional unit of

• A)labour produces more output than the previous unit.
• B)labour increases the real wage rate.
• C)labour decreases output.
• D)labour produces less output than the previous unit.
• E)capital produces more output than an additional unit of labour.

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Definitions:

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which separate financial information is available.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of rules and guidelines meant to ensure financial reporting consistency and transparency.

Geographic Segment

A part of a business that operates in a specific geographical area that is significant enough to require separate financial reporting.

U.S. GAAP

Short for United States Generally Accepted Accounting Principles, it represents the framework and specific rules for financial accounting and reporting in the U.S.