Diminishing Returns to Capital Is a Consequence of Firms' Incentives

question 21

Multiple Choice

Diminishing returns to capital is a consequence of firms' incentives to use each piece of capital as productively as possible and illustrates the:

• A)principle of comparative advantage.
• B)principle of increasing opportunity costs.
• C)scarcity principle.
• D)cost-benefit principle.

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Definitions:

In-service Training

Training provided to employees during their tenure at an organization to improve their skills and knowledge.

Staff Development

The process of improving the skills, competencies, and knowledge of staff members through various forms of training and educational opportunities.

Organization Chart

A chart showing the organization-wide distribution of work, with titles of each position and interconnecting lines showing who reports to and communicates with whom.

Traditionals

Refers to practices and beliefs passed down through generations within a culture or community.