Diminishing Returns,so That Each Additional Hour of Labor Employed Produces

question 110

Multiple Choice

Diminishing returns,so that each additional hour of labor employed produces successively smaller additional amounts of real GDP,exist because

• A)labor is not very productive.
• B)extra labor produces more output.
• C)all other factors are held fixed.
• D)the price level rises as more workers are employed.
• E)additional workers are paid higher wage rates.

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Definitions:

Job Market

The availability of employment and labor, in terms of supply and demand.

Macro-structures

Large-scale patterns and systems in society that shape and organize social life, such as economic systems or governmental institutions.

International Organizations

Entities established by treaties between sovereign states to pursue common goals or facilitate political, economic, or social cooperation.

Social Structure

The organized pattern of social relationships and institutions that together compose society, determining how it functions.