-In the Above Figure,Graph D with Capital on the Vertical

question 105

Multiple Choice

-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that

• A) the marginal product of labor is increasing as more labor is employed.
• B) the marginal product of labor is decreasing as more labor is employed.
• C) the capital and labor are perfect substitutes.
• D) capital and labor have to be employed in fixed proportions.

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Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Perfect Income Equality

A hypothetical situation where all individuals within an economy have the exact same income, eliminating income disparities.

Top Quintile

The highest fifth of a population in income or wealth distribution, representing those with the greatest share of income or wealth.

Income

Money received, especially on a regular basis, for work, through investments, or from business activities, used to fund day-to-day expenditures or save for the future.