Which of the Following Statements Is True Regarding the Concept

question 133

Multiple Choice

Which of the following statements is true regarding the concept of independent demand?

• A) These items are usually raw materials.
• B) The requirements for these items are usually forecasted.
• C) The demand for these items must be calculated.
• D) The demand for these items is related to demand for other items.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total output by the quantity of inputs used.

Production Possibilities

Different combinations of goods and services that an economy can produce efficiently with its available resources and technology.

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 increase in output resulting from a one-unit increase in the input of a production factor, holding all other inputs constant.