The Marginal Productivity Principle Implies That

question 9

Multiple Choice

The marginal productivity principle implies that

• A)quantity demanded of an input normally declines as the input price falls.
• B)at equilibrium, profit from the last unit of input will be zero.
• C)for maximizing profit, marginal revenue product should be greater than price.
• D)marginal productivity of inputs increase when price of inputs increase.

---

Definitions:

Social Class

A division of society based on social and economic status, influencing individuals' opportunities, lifestyles, attitudes, and behavior.

Tabula Rasa

A philosophical theory that suggests individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Adaptive Personalities

Traits in individuals that enhance their ability to cope with changes and challenges in their environment.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.