When a One-Unit Increase in Input Increases Output More Than

question 70

Multiple Choice

When a one-unit increase in input increases output more than the previous unit of input, we say that there are

• A)increasing returns.
• B)increasing costs.
• C)diseconomies of scale.
• D)decreasing returns.
• E)constant returns to scale.

---

Definitions:

Minimum Wage Laws

Legislation that establishes the lowest amount that can be paid to workers for their labor.

Labor Market

A marketplace where employers find workers and workers find jobs; it involves the supply and demand for labor.

Unemployment

The condition of being without a job, despite actively seeking work, often measured as a percentage of the labor force.

Income Inequality

Income Inequality describes the extent to which income is distributed unevenly among a population.