Since 1950,the Portion of U

question 1

Multiple Choice

Since 1950,the portion of U.S.GDP created by services has:

• A) remained relatively constant.
• B) fallen by a half.
• C) more than doubled.
• D) increased slightly.

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Definitions:

Marginal Revenue Product

The extra income created by the use of an additional unit of a production input.

Marginal Resource Cost

Marginal Resource Cost is the additional cost incurred by obtaining one more unit of a resource, such as labor or raw materials, used in the production of goods and services.

Profits

The financial gain realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

MRP Curve

Short for Marginal Revenue Product curve, which represents the additional revenue a firm earns by employing one more unit of input, assuming other factors remain constant.