If There Are Diminishing Returns to Capital,then

question 141

Multiple Choice

If there are diminishing returns to capital,then

• A)capital produces fewer goods as it ages.
• B)old ideas are not as useful as new ones.
• C)increases in the capital stock eventually decrease output.
• D)increases in the capital stock increase output by ever smaller amounts.

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Definitions:

Faithful Representation

A qualitative characteristic of financial information that ensures all figures are complete, neutral, and free from material error.

Neutral

A term often used in analysis or discussions to indicate a position or opinion that is unbiased or not leaning towards any particular side or outcome.

Error

A mistake in the collection, recording, or analysis of data, often leading to incorrect results or conclusions.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards and practices used in Canada to govern financial reporting.