The Source of Diminishing Returns Is

question 81

Multiple Choice

The source of diminishing returns is

• A)The efficiency that results from workers specializing in one aspect of production.
• B)The fact that anytime you increase labor you get more output.
• C)The inefficiency that results from the fact that capital is fixed.
• D)The when each worker is equally capable, each worker adds to production exactly the same as the previous one.

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Definitions:

Compensating Differentials

Wage differences across jobs that reflect the attractive or unattractive aspects of those jobs, serving to equalize the desirability of these positions.

Teacher Quality

Teacher quality encompasses the various attributes of a teacher, including expertise, effectiveness in teaching, and ability to positively influence student outcomes.

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job or job conditions.

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job's attributes.