Diminishing Returns Means That

question 59

Multiple Choice

Diminishing returns means that

• A)hiring more labor results in less real GDP.
• B)each additional unit of labor produces successively more real GDP.
• C)hiring more labor must lower the real wage rate.
• D)each additional unit of labor produces successively less real GDP.
• E)each extra unit of real GDP produced requires less labor.

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Definitions:

Cash Dividend Liability

An obligation for a corporation to pay shareholders a declared dividend in cash.

Date of Record

The specific date set by a corporation upon which the company determines the shareholders eligible to receive a dividend or distribution.

Income Tax Expense

The cost of income taxes a company must pay, reported in the income statement as part of its expenses.

Dividends

Funds disbursed by a company to its shareholders, frequently as an allocation of earnings.