All Else Equal,if There Are Diminishing Returns,then If a Country

question 10

Multiple Choice

All else equal,if there are diminishing returns,then if a country raised its capital by 100 units last year and by 100 units this year,

• A)the increase in output was greater for this year than last year.
• B)the increase in output was greater last year than this year.
• C)the increase in output is the same in both years.
• D)None of the above is necessarily correct.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate wealth through investment or production.

Services for Cash

Transactions in which services are provided with immediate payment in cash, not involving credit terms.

Liability

An obligation of a company or an individual arising from past transactions or events, leading to a future outflow of assets.

Revenue

Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations.