As the Quantity of Capital Increases, the Marginal Product of Labour

question 65

Multiple Choice

As the quantity of capital increases, the marginal product of labour

• A)is constant.
• B)increases.
• C)decreases.
• D)may either increase or decrease.
• E)gets more expensive.

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Definitions:

Efficient Level

An optimal point where resources are utilized in the most productive manner without waste, achieving the best outcome.

Positive Externality

A beneficial effect experienced by a third party as a result of an economic transaction or activity between others.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often a byproduct of production or consumption.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.