The Law of Diminishing Marginal Returns CANNOT Predict the Effect

question 21

Multiple Choice

The law of diminishing marginal returns CANNOT predict the effect of an additional unit of input when

• A) all other inputs are fixed.
• B) it is possible to vary the proportion in which the various inputs are used.
• C) technology is changing.
• D) output rises.
• E) marginal product is falling.

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Definitions:

Consequences

The outcomes or effects that result from a particular action or set of conditions.

Punishment

The imposition of a penalty as retribution for an offense, with the intention of discouraging undesirable behavior.

External Locus

The belief that one's outcomes or fate are controlled by external forces or the environment, as opposed to internal factors or personal effort.

African American

An ethnic group of Americans with total or partial ancestry from any of the black racial groups of Africa.