The Flattening Out of the Production Function Is Due to

question 48

Multiple Choice

The flattening out of the production function is due to

• A)the declining opportunity cost of labor.
• B)the increasing scarcity of labor.
• C)increasing returns to labor.
• D)all other factors being held constant.
• E)the increasing specialization of labor.

---

Definitions:

Dispute Settlement Understanding

A core WTO agreement that outlines how countries can resolve trade disputes under its framework.

WTO

Short for World Trade Organization, an international body aimed at promoting and facilitating free trade by reducing tariffs and other trade barriers.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to regulate trade.

Normal Trade Relations

A GATT principle of trade law which requires that WTO member states treat like goods coming from other member states on an equal basis.