Decreasing Marginal Returns Occur in the Short Run as More

question 125

Multiple Choice

Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because

• A) less efficient and less productive workers are hired.
• B) adding more workers exhausts the possible gains from specialization.
• C) the entrepreneur does not know how to manage more workers.
• D) each worker will produce more than the worker previously hired.
• E) the plant becomes less specialized.

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Definitions:

Nationalize

The process by which a government takes control of a private industry, business, or assets, often to ensure public access or control.

Third World Countries

A term historically used to describe nations that were neither aligned with the capitalist First World nor the communist Second World during the Cold War, often referring to developing countries.

Segregation Practices

Policies or practices promoting the separation of people based on racial or ethnic differences, historically enforced through laws and social norms.

Containment Policy

A United States foreign policy during the Cold War aimed at preventing the spread of communism by providing economic and military support to countries threatened by communist insurgency.