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The Law of Diminishing Returns States That

Question 25

Multiple Choice

The law of diminishing returns states that:


A) when all inputs are held constant, there is an upper limit to the amount of output that can be produced.
B) when one input is held constant, while other inputs are increased, eventually output will increase by smaller and smaller amounts.
C) the lower the level of human capital in an economy, the lower the economic growth rate.
D) the level of capital accumulation is directly related to the level of human capital in an economy.

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