Diminishing Marginal Returns Occur When

question 7

Multiple Choice

Diminishing marginal returns occur when

• A) one input is increasing and the others are held constant
• B) all inputs increase
• C) one input is decreasing while the other increases
• D) output is decreasing

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Definitions:

Efficient Share

The optimal allocation or distribution of resources and goods in a way that maximizes productivity and utility without waste.

Efficiently Used

Utilized in a manner that maximizes productivity or effectiveness while minimizing waste or unnecessary expenditure of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Efficiency

The optimal use of resources to achieve the best possible outcome.