A Reason a Nation Faces Diminishing Returns Along a Production

question 119

Multiple Choice

A reason a nation faces diminishing returns along a production function is because

• A)full employment is not possible.
• B)the quantity of physical capital is fixed.
• C)potential GDP is fixed.
• D)unemployment always exists.
• E)the wage rate is fixed while moving along the production function.

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Definitions:

Total Cash Flows

The sum of all cash receipts and disbursements within a given period, including operating, investing, and financing activities.

Proposed Project

A structured series of related activities scheduled for completion within a set period, while staying within defined budgetary and other restrictions.

Final Cash Flow

The last payment received from an investment, including the return of principal plus any final interest or dividend payments.

Inventory

The items and substances that a company possesses with the ultimate aim of selling them or using them in manufacturing.