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

question 21

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

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Definitions:

Absurd

Relating to an existential sense of pointlessness or the irrational or incongruous aspect of life.

Contraception

Methods or devices used to prevent pregnancy as a result of sexual intercourse, aiming to control fertility and family planning.

Abortion

The medical process of ending a pregnancy so it does not result in the birth of a child.

Nietzsche

A German philosopher, cultural critic, and poet, known for his concepts of the Übermensch, the will to power, and the eternal recurrence.