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As More Labor Is Hired,moving Along the Production Function,diminishing Returns

Question 147

Multiple Choice

As more labor is hired,moving along the production function,diminishing returns occur because


A) workers are overworked and so their productivity decreases.
B) the wage rate paid is too low and so workers decrease their work effort.
C) there are fixed quantities of other resources.
D) the real wage rate must increase in order to hire additional workers.
E) real GDP increases more rapidly the more workers are hired.

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