When There Are Diminishing Returns to Labor, the Production Possibility

question 48

Multiple Choice

When there are diminishing returns to labor, the production possibility frontier is _______ sloping and ________.

• A) downward; convex (bowed in toward the origin)
• B) downward; concave (bowed out from the origin)
• C) upward; concave (bowed out from the origin)
• D) upward; convex (bowed in toward the origin)

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Definitions:

Exhaustion stage

The third phase of the General Adaptation Syndrome, characterized by depleted physical and mental resources following prolonged stress.

Routine hassles

Minor everyday problems or annoyances that, although seemingly trivial, can accumulate and contribute significantly to stress and health problems.

Type B personality

A personality type characterized by a relaxed, patient, and easy-going nature, in contrast to the more tense and goal-oriented Type A personality.

Entrance scholarship

A financial award provided to a student upon entry into a college or university, typically based on academic merit or other achievements.