The Principle of the Diminishing Marginal Productivity of Capital Means

question 93

Multiple Choice

The principle of the diminishing marginal productivity of capital means that

• A)the total factor productivity increases with capital.
• B)the total factor productivity declines with capital.
• C)the marginal product of capital tends to decline as the amount of capital in use increases.
• D)the marginal product of capital tends to decline as the amount of capital in use decreases.

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Definitions:

Outer Space

Outer space is the vast expanse that exists beyond Earth and its atmosphere, characterized by a vacuum and the presence of celestial bodies like stars, planets, and asteroids.

Priming

A process in memory where exposure to one stimulus influences the response to another stimulus, often without conscious guidance or intention.

Automatic Processing

Cognitive activities that require little effort, awareness, or conscious control, such as habits and learned skills.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end, often due to the initial items receiving more cognitive focus.