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

question 23

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 an unconventional view of the production process.
• B)is an assertion that capital is subject to increasing 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:

Opportunity Cost

The expense incurred by not choosing the second-best option while deciding.

Monthly Cash Flows

The total amount of money being transferred into and out of a business, particularly during a month.

Lockbox System

A system used by companies to expedite the collection of check payments by having them processed through a bank's PO Box.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at their face value to create a return to the investors.