Increasing Marginal Returns to Labor

question 271

Multiple Choice

Increasing marginal returns to labor

• A) occur when a particularly efficient worker is employed.
• B) describe the portion of a total product curve where the marginal product is negative.
• C) mean that two workers produce less than twice the output of one worker.
• D) are the result of specialization and division of labor in the production process.
• E) occur only when there are increasing marginal returns to capital.

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Definitions:

Dollar Stream

A continuous flow of income or revenue often described in terms of the currency, notably used in financial planning and investment analysis.

Discount Rate

The rate of interest applied to calculate the current value of future cash flows within discounted cash flow evaluation.

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Energy harnessed from the sun's rays, converted into thermal or electrical energy for use in various applications.