If an Increase in the Number of Workers Leads to All

question 5

Multiple Choice

If an increase in the number of workers leads to all workers becoming less productive, this situation is called:

• A)diminishing profitability
• B)diminishing marginal product
• C)increasing marginal product
• D)lessening production

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' claim on the business assets.

Withdrawals

Funds taken out from a business by its owner(s) for personal use, which reduce the capital accounts in the company’s equity section.

Revenue

The global earnings a company obtains from its key operational trades, especially in goods or services sales.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.