As More Labour Is Hired,moving Along the Production Function,diminishing Returns

question 137

Multiple Choice

As more labour is hired,moving along the production function,diminishing returns occur because

• A)there are fixed quantities of other resources.
• B)the real wage rate must increase in order to hire additional workers.
• C)real GDP increases more rapidly the more workers that are hired.
• D)the wage rate paid is too low and so workers decrease their work effort.
• E)workers are overworked and so their productivity decreases.

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