The Below Figure Shows the Various Combinations of the Goods

question 26

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-If labor is the only variable input, an increase in the quantity of labor:

• A)does not have any effect on the quantity of output.
• B)causes the output to increase initially at a diminishing rate and then at an increasing rate.
• C)causes the output to increase at a constant rate till the last worker is hired.
• D)causes the output to increase initially at an increasing rate and then at a decreasing rate.
• E)causes the output to decrease at a constant rate till the last worker is hired.

---

Definitions:

Interest Semiannually

The payment of interest two times per year on a loan or bond.

Bond Covenant

Legal agreements between bond issuers and bondholders that specify terms and conditions to protect the interests of both parties.

Sinking Fund

A savings fund accumulated over time for the specific purpose of paying off a debt or replacing a capital asset in the future.

Bond Issue

The act of a borrower issuing bonds to raise funds from investors who will be repaid at a later date, typically with interest.