Diminishing Returns to Physical Capital Means That, When the Amount

question 236

Multiple Choice

Diminishing returns to physical capital means that, when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to:

• A) a smaller increase in the marginal product of labor.
• B) a decrease in the total amount of output.
• C) negative marginal product.
• D) a constant amount of total output.

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Definitions:

Theoretical Sampling

A method in qualitative research where data collection is directed by concepts derived from evolving theory until no new insights are obtained.

Experimental Methods

A research methodology that involves manipulating one variable to determine if it causes a change in another variable, often used to establish cause-and-effect relationships.

Universal Principles

Fundamental norms, rules, or values that are widely accepted and applied across different cultures and contexts.

A Priori Hypothesis

A hypothesis formulated based on theoretical considerations or previous evidence before conducting a new study.