The More Any Given Resource Is Applied to Production, the Lower

question 34

Multiple Choice

The more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output. This is referred to as

• A) the point of no return.
• B) the law of diminishing returns.
• C) supply and demand.
• D) network inelasticity.

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Definitions:

Bank Failures

Occurrences when a bank is unable to meet its obligations to depositors or creditors and ceases operations, often resulting in regulators seizing the institution.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and widespread poverty.

Lost Confidence

A situation where consumers or investors become pessimistic about the economic prospects, leading to reduced spending and investment.

Prime Interest Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark for various interest rates.