Diminishing Returns to Physical Capital Means That, When the Amount

question 236

Multiple Choice

Diminishing returns to physical capital means that, when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to:

• A) a smaller increase in the marginal product of labor.
• B) a decrease in the total amount of output.
• C) negative marginal product.
• D) a constant amount of total output.

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Definitions:

Type II Error

The mistake of failing to reject a null hypothesis when it is actually false, leading to a false negative conclusion.

Statistical Tests

Procedures used in statistics to determine whether hypotheses about the distribution of data can be rejected, based on sample data.

Sample Size

The number of observations or subjects included in a study.

Effect Size

A quantitative measure of the magnitude of a phenomenon, used to indicate the size of an effect or difference found in a study.