"Indivisibility" Relates To

question 46

Multiple Choice

"Indivisibility" relates to:

• A)"Lumpy" resources
• B)A characteristic of a resource to be only feasible to increase in large increments e.g. a new mine.
• C)"Stretchable" resources
• D)Resources that are not tangible

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Definitions:

Physical Capital

Refers to tangible assets used in the production of goods and services, such as machinery, buildings, and tools.

Productivity

The measure of the efficiency of production, often defined as the ratio of output to inputs in the production process.

Constant Returns To Scale

A situation in production where an increase in the input of resources leads to a proportionate increase in output, resulting in no change in average costs.

Production Function

The relationship between the quantity of inputs used to make a good and the quantity of output of that good.