The Slope of the Per-Worker Production Function Diminishes as the Amount

question 38

Multiple Choice

The slope of the per-worker production function diminishes as the amount of capital per-worker increases.This is a reflection of the law of _____.

• A)increasing marginal returns
• B)diminishing marginal returns
• C)constant marginal returns
• D)first diminishing then increasing marginal returns
• E)demand

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Definitions:

Exponential Trend

A pattern of data that showcases growth or decay at a constantly increasing rate, often represented graphically as a curved line.

Autoregressive(2)

A type of statistical model used in time series analysis in which a variable's current value is predicted from its own previous values, using two time-lags.

Second-order Autoregressive Model

A stochastic process where the current value is based on a linear combination of the two immediately prior values plus an error term.

Average Mortgage Rate

The mean interest rate given across all mortgage loans in a given period, indicating the cost of borrowing for home loans.