As a Result of a Fire, a Small Business Owner

question 101

Multiple Choice

As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see

• A)an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• B)an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.
• C)a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• D)a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.

---

Definitions:

Social Dosage Effect

Refers to the varying impacts social interactions can have on an individual depending on the frequency and intensity of those interactions.

Sociometric Analysis

A quantitative method for measuring social relationships, often used to identify social leaders, isolates, or group dynamics within a community or organization.

Mixed-Gender Groups

Social or working groups consisting of members of both sexes, allowing for interaction and collaboration across gender lines.

Domineering

Refers to a behavior that is overbearing or attempts to control others in an assertive or aggressive manner.