The Point of Diminishing Returns Means That Output Will Decrease

question 90

True/False

The point of diminishing returns means that output will decrease at an increasing rate.

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Definitions:

Primary Industry

The sector of the economy that extracts and harvests natural resources directly from the Earth, such as agriculture, mining, and forestry.

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.

Substitute

A product or service that can be used in place of another to satisfy the same want or need.