Which of the Following Is True of the Net Marginal

question 62

Multiple Choice

Which of the following is true of the net marginal productivity of a capital investment?

• A)The net marginal productivity falls with an increase in the additional output generated.
• B)The net marginal productivity increases when the rate of interest increases.
• C)The net marginal productivity falls with a higher rate of investment.
• D)The net marginal productivity increases if the initial cost of capital increases.

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Definitions:

Tobacco Farming

The cultivation of tobacco plants for the production of cigarettes, cigars, and other tobacco products, historically a significant agricultural activity in the southern United States.

Seventeenth-Century Virginia

Refers to the English colony in North America during the 1600s, a period of early settlement, tobacco cultivation, and African enslavement.

Elite Plantation-Owning Class

Refers to the class of individuals or families who owned large areas of land used for agricultural production, specifically plantations, which often relied on enslaved labor in pre-Civil War America and other colonial contexts.

Puritans

English religious group that sought to purify the Church of England; founded the Massachusetts Bay Colony under John Winthrop in 1630.