The Fact That Isoquants Are Downward Sloping Indicates

question 83

Multiple Choice

The fact that isoquants are downward sloping indicates

• A)the diminishing marginal productivity of a variable factor.
• B)the diminishing marginal productivity of a fixed factor.
• C)that each factor input has a negative marginal productivity.
• D)a change in relative factor prices,with output held constant.
• E)that a reduction in the use of one factor requires an increase in the use of the other factor in order to keep output constant.

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Definitions:

Adjusted Balances

Balances that have been modified to reflect corrections or adjustments to initial reported amounts, often in the context of bank accounts or financial statements.

Closing Accounts

The process of zeroing out income and expense accounts to transfer their balances to permanent accounts at the end of an accounting period.

Ledger

A book or collection of financial accounts where all transactions are summarized and recorded using a double-entry bookkeeping system.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after making adjusting entries.