The Principle of Diminishing Marginal Productivity of Capital Implies That

question 64

Multiple Choice

The principle of diminishing marginal productivity of capital implies that

• A)output will diminish as capital increases.
• B)output will increase first,but it will decrease as capital increases.
• C)output will increase at diminishing rate as capital increases.
• D)output will decrease first,but it will increase as capital increases.

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Definitions:

Minority Group

A group of people who, because of their physical or cultural characteristics, are singled out from the others in the society in which they live for differential and unequal treatment.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type, often applied to raw materials and agricultural products.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Racial Passing

The act of a person classified as a member of one racial group being accepted or identifying as a member of another, often to escape racial discrimination.