The Number of Employees in Manufacturing Has Increased in Both

question 28

True/False

The number of employees in manufacturing has increased in both absolute and relative terms since 1950.

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Definitions:

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Cobb-Douglas Production Function

Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.

Optimal Input Demands

The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.

Expenditures

Money spent on goods, services, or other expenses.