When Additions of Input to a Fixed Quantity of Another

question 232

Multiple Choice

When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing

• A)diminishing returns.
• B)negative returns.
• C)accelerating returns.
• D)decreasing production.
• E)diseconomies of scale.

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Definitions:

Imports

Goods or services brought into one country from another for the purpose of trade.

Exports

Goods and services produced in one country and sold to buyers in another, contributing to the exporting nation's GDP.

Net National Product

The total market value of all goods and services produced by the residents of a country, adjusted for depreciation.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, reflecting the loss of value due to wear and tear, decay, or obsolescence.