The law of diminishing returns implies that, with the quantity of capital fixed, as the use of labor rises
A) total product will fall eventually.
B) the marginal product of labor will fall eventually.
C) the total product of labor will fall below the marginal product of labor.
D) the production process will become technologically inefficient eventually.
Question 2
An expansion of the production possibilities frontier is
A) called economic growth.
B) proof that scarcity is not a binding constraint.
C) a free gift of nature.
D) something that has occurred only rarely in history.
Natural Capital
Stages of Labor
The proportion of adults 55 to 64 in the labor force in Germany, Italy, and France is low and has ...
Marginal Products of Physical and Human Capital
Share of Human Capital in Wages in Advanced Countries
GDP and Capital per Worker, 2009