"When Workers Already Have a Large Quantity of Capital to Use

question 152

Multiple Choice

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

• A)represents the traditional view of the production process.
• B)is an assertion that capital is subject to diminishing returns.
• C)is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant.
• D)All of the above are correct.

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Definitions:

Elastic

describes a condition in which the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Corporate Profits Tax

A levy imposed on the income or profit earned by corporations or analogous legal entities.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Proprietorships

Businesses owned and operated by a single individual, with no legal distinction between the owner and the business entity.