In the Two-Sector Specific-Factors Model, Diminishing Returns to Labor Implies

question 49

Multiple Choice

In the two-sector specific-factors model, diminishing returns to labor implies:

• A) that the country's production possibilities frontier is linear (a straight line).
• B) that the country's production possibilities frontier is concave to the origin (bowed out from the origin).
• C) that the country's production possibilities frontier is convex from the origin (bowed in toward the origin).
• D) that the country's production possibilities frontier may be either concave to or convex from the origin.

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Definitions:

Allowance

A planned amount of time or cost added to an estimate to account for uncertainties, or an amount of money given at regular intervals for a specific purpose.

Constant Allowances

Fixed sums or quantities that are allocated regularly, such as allowances in budgets or time estimations in project management.

Performance Rating

A quantitative assessment often used to evaluate the efficiency, output, or success of an individual, system, or organization in achieving its objectives.

Normal Time

The average time that a worker takes to complete a specific task under normal working conditions, considering both productive and unproductive time.