Assuming Diminishing Returns

question 1

Multiple Choice

Assuming diminishing returns,

• A)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
• B)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
• C)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
• D)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.

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Definitions:

Total Manufacturing Cost

The aggregate cost of direct material, direct labor, and manufacturing overhead incurred in the production of goods.

Schedule of Cost

A detailed list that shows the various components contributing to the total cost of a project or manufacturing process.

Operations Data

Information related to the day-to-day activities of a business, such as production volumes, input costs, and inventory levels, used for operational planning and analysis.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated overhead costs and estimated activity levels.