Economists Use the Term ______ to Refer to an Increase

question 52

Short Answer

Economists use the term ______ to refer to an increase in the overall level of prices in the economy.

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Definitions:

Diminishing Marginal Returns

A principle stating that after an optimal point, further increases in one input while holding others constant will result in smaller and smaller gains in output.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a variable input.

Marginal Physical Product

The additional output produced by using one more unit of a variable input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.