Diminishing Returns Means That

question 105

Multiple Choice

Diminishing returns means that

• A)hiring more labour must lower the real wage rate.
• B)each additional unit of labour produces successively less real GDP.
• C)each extra unit of real GDP produced requires less labour.
• D)each additional unit of labour produces successively more real GDP.
• E)hiring more labour results in less real GDP.

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Definitions:

Percent

A part or other object per hundred, used to indicate a proportion out of one hundred in fractions or rates.

Eli Ginzberg

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