What Term Is Used to Describe the Result of Adding

question 104

Multiple Choice

What term is used to describe the result of adding more and more units of a variable resource to a production process where there is at least one fixed variable and the resulting increase in output begins to decrease?

• A)Depreciation.
• B)The law of increasing productivity.
• C)The law of marginal productivity.
• D)The law of diminishing returns.

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Definitions:

Rate of Return

Variation in the value of an investment over a specific duration, measured as a percentage of the investment's starting cost.

Annual Dividend

The total dividend payment a shareholder receives from a company over one fiscal year.

Increasing the Dividend

The action by a company to raise the amount of money paid to shareholders out of its profits on a per-share basis.

Rate of Return

The rate at which an investment gains (or loses) value over a specified period, expressed as a percentage.