When Total Product Is Increasing at a Decreasing Rate, Marginal

question 283

Multiple Choice

When total product is increasing at a decreasing rate, marginal product is

• A) positive and increasing.
• B) positive and decreasing.
• C) constant.
• D) negative.

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Definitions:

Consumption

The process by which goods and services are used up by consumers, representing the end phase of the economic cycle.

Income

Financial gains, customarily on a constant basis, from vocational activities or investments.

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.