The Positive Slope of the Per-Worker Production Function Illustrates the Relationship

question 1

Multiple Choice

The positive slope of the per-worker production function illustrates the relationship between per-worker output and ________.

• A)diminishing marginal returns
• B)the capital-labor ratio
• C)the rate of inflation
• D)the rate of unemployment

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Definitions:

Inelastic

Describes a situation in which the demand for a good or service is relatively unresponsive to changes in price.

Total-revenue Curve

A graphical representation that shows how a company's total revenue changes in response to changes in the quantity of goods or services sold.

Linear Demand Curve

A representation of the relationship between the price of a good and the quantity demanded, characterized by a constant slope, indicating a steady change in demand relative to price.

Elastic

Describes a situation where the quantity demanded or supplied of a product changes significantly in response to a change in price.