Each of the Following Increases Average Labor Productivity Except

question 104

Multiple Choice

Each of the following increases average labor productivity except :

• A)more human capital.
• B)more physical capital.
• C)more central planning.
• D)more natural resources.

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Definitions:

Diminishing Returns

A principle stating that as one input variable is increased, there will be a point at which the additions of output will begin to decrease, holding all other inputs constant.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates at higher levels of output.

Long Run

A period in economic theory during which all factors of production and costs are variable.

Average Costs

Average costs are calculated by dividing the total costs of production by the quantity of output produced, often used to assess cost efficiency.