"As I Add More Workers to the Factory Line,the Additional

question 104

Multiple Choice

"As I add more workers to the factory line,the additional output produced by each additional worker seems to decline.Eventually,the workers just get in each others' way." This statement by a factory supervisor refers to:

• A)the law of comparative advantage.
• B)the law of demand.
• C)the law of supply.
• D)the law of diminishing marginal utility.
• E)the law of diminishing marginal returns.

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a specific time period.

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country.

Tax Receipts

The income received by the government from taxes.

Federal Transfer Payments

Government payments transferred to individuals or states, often for assistance, without requiring direct services in return.