Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A) Due to fixed resources, an additional unit of labour always adds more to production.
• B) The marginal product of labour always increases when an additional unit of labour is employed.
• C) Diminishing returns is a rare situation that occurs only when all inputs are not fixed.
• D) The law of diminishing returns indicates that addition of an extra unit of a variable factor will decrease the marginal product.

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Definitions:

Upper Two Quintiles

The section of a population that falls into the top 40% in terms of income or wealth distribution, often used in socio-economic analyses.

Income

The money received by an individual or entity in return for their labor, from transfers, or from investments.

Middle Three Quintiles

The middle three quintiles refer to the middle segments of a population when it is divided into five equal parts based on income or wealth, often used to represent the middle class.

Income Received

The total earnings obtained by individuals or entities, typically through employment, investments, or other sources, during a specified period.