The Law of Diminishing Returns States That, Ceteris Paribus, the

question 103

Multiple Choice

The law of diminishing returns states that, ceteris paribus, the

• A) MPP of labor declines as additional land, raw materials, and other factors of production are employed.
• B) MPP of labor declines as the wage rate falls.
• C) MPP of labor declines as product price declines.
• D) MPP of labor declines as more labor is employed.

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Definitions:

Unconscious Desires

Unconscious desires are wishes, wants, or drives that an individual is not aware of but which influence emotions and behavior.

Introspection

The examination of one's own conscious thoughts and feelings, used in psychology to explore the inner processes of the mind.

Mental Processes

Internal, covert activities of the mind, such as thinking, reasoning, imagining, and remembering.

Behaviorist

A psychologist who studies and practices behaviorism, focusing on observable and measurable aspects of human and animal behaviors rather than internal processes like thinking or emotion.