Assuming Diminishing Returns

question 1

Multiple Choice

Assuming diminishing returns,

• A)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
• B)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
• C)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
• D)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.

---

Definitions:

Process Cost System

An accounting system used to track costs associated with processes that produce homogeneous products.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product or service.

Process Cost System

This is an accounting methodology used to allocate costs to units of product in continuous operations, industries where the products are homogeneous.

Manufacturing Cost Elements

The components of manufacturing costs, typically including direct materials, direct labor, and manufacturing overhead.