The Principle That If the Amount of Labour and Other

question 1

Multiple Choice

The principle that if the amount of labour and other inputs is held constant,then the greater the amount of capital in use,the less an additional unit of capital adds to production is called

• A) increasing average capital productivity.
• B) diminishing returns to capital.
• C) increasing returns to capital.
• D) decreasing output per unit of capital.
• E) declining capital to labour ratios.