The Coordination Task of Any Economy That Answers the Question

question 166

Multiple Choice

The coordination task of any economy that answers the question of how output shall be divided among consumers may best be described as

• A)output selection.
• B)production planning.
• C)distribution.
• D)input-output analysis.

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Definitions:

Law of Diminishing Returns

The principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, while holding all other inputs constant, crucial in understanding production efficiency.

Average Product

The output per unit of input, such as the average amount of goods produced per labor hour.

Total Product

The total output of goods or services produced by a firm in a given period of time.