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When an Economy Faces Diminishing Returns

Question 27
Multiple Choice

When an economy faces diminishing returns, A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. B) the slope of the per-worker production function becomes flatter as capital per hour worked increases. C) the per-worker production function shifts to the left. D) the per-worker production function shifts to the right.

Related questions
Q 28
When additions of input to a fixed quantity of another input lead to progressively smaller increases in output,we say we are facing A) diminishing returns. B) negative returns. C) accelerating returns. D) decreasing production.
Q 29
Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns? A) by less than $500 B) by exactly $500 C) by more than $500 but less than $5,000 D) by more than $5,000 but less than $20,000
Q 30
Refer to Figure 22-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from A) A to C. B) B to C. C) C to D. D) D to C.
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