-The Table in the Above Figure Shows the Levels of Output

question 95

Multiple Choice

-The table in the above figure shows the levels of output resulting from different levels of inputs.Which of the following conclusions can be drawn from this information?

• A) Increasing returns to scale exist between 100 and 200 units of output.
• B) Constant returns to scale exist throughout all levels of production.
• C) Labor is subject to diminishing marginal productivity in the short run.
• D) No firm conclusions can be drawn.

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Definitions:

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, not zero unemployment.

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.

Money Growth

The increase in the amount of money in an economy over time.

Unemployment Compensation

Financial payments provided to individuals who have lost their jobs until they find new employment.