The Law of Diminishing Returns, as It Applies to Labor

question 12

Multiple Choice

The law of diminishing returns, as it applies to labor, means that

• A)the marginal product of labor eventually declines.
• B)the marginal product of labor will eventually be a horizontal line at zero.
• C)the average product of labor increases at a decreasing rate.
• D)the average product of labor starts to decline before the marginal product of labor.
• E)total output eventually decreases.

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Definitions:

Cohesion

The degree to which members of a group or team are connected and remain united in achieving a common goal.

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, or other forms of social involvement.

Group Rituals

Established sequences of activities or ceremonies that are performed by a group, often with symbolic value.

Team Work

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.