The Situation That Occurs When the Addition of Resources Creates

question 30

Multiple Choice

The situation that occurs when the addition of resources creates inefficiencies is known as ________.

• A) diseconomies of scale
• B) marginal utility
• C) marginal returns
• D) break-even
• E) inverse efficacy

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real GDP.

Full Employment

An economic situation in which all available labor resources are being used in the most efficient way possible, often characterized by the absence of cyclical unemployment.

Technology Level

A measure of the degree of sophistication and advancement of a society's tools, techniques, and methods of production.

Instability

The condition of being prone to change or fluctuation, often in a way that is unpredictable or potentially harmful.