Due to Diminishing Marginal Returns,the Ultimate Source of Economic Growth

question 37

Multiple Choice

Due to diminishing marginal returns,the ultimate source of economic growth in Canada over the past 50 years has been

• A) capital.
• B) labour.
• C) total factor productivity.
• D) a combination of capital, labour, and total factor productivity.

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Definitions:

Variable Overhead

Overhead costs that fluctuate with the level of production activity, such as utilities or indirect materials.

Direct Materials

Raw materials that are directly attributable and allocable to a finished product in the manufacturing process.

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Variable Overhead

Costs that fluctuate with changes in production volume, such as utilities and materials, affecting the cost to produce goods or services.