Diminishing Marginal Returns Occur Because

question 26

Multiple Choice

Diminishing marginal returns occur because

• A) hiring more employees means that each has less capital with which to work.
• B) it is more difficult to manage a firm as the size of the workforce and capital stock both grow.
• C) the best employees will always be hired first.
• D) hiring more employees means that they will subdivide tasks and therefore become more efficient.

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Definitions:

Repressed Memories

Memories involuntarily suppressed because they are linked to intense stress or trauma.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.

Dissociation

A psychological experience in which a person feels disconnected from their thoughts, feelings, memories, or sense of identity, often in response to traumatic stress.

Repression

A defense mechanism where distressing thoughts, experiences, and memories are unconsciously excluded from conscious awareness.