Econ Quiz: Law of Diminishing Marginal Returns

What are the two types of resources mentioned in the video?

• Land and Machinery

• Labor and Capital

• Short and Long

• Fixed and Variable

In which stage of returns does the marginal product start to fall?

• There is no stage with falling marginal product

• Stage 2

• Stage 1

• Stage 3

What is the concept that describes the additional output generated from hiring one additional worker?

• Marginal product

• Economies of scale

• Specialization

• Total product

A company is in the short-run when they have at least one fixed resource. True or False?

• Not mentioned

• False

• Can't say

• True

What is the main idea behind the law of diminishing marginal returns?

• The more workers, the better the output

• Specialization leads to increased output

• Adding more workers eventually leads to less additional output

• The fixed resources limit the total output

What is the total product curve a representation of?

• Fixed resources vs. variable resources

• Total output vs. number of workers

• Marginal product vs. total output

• Total cost vs. total output

What is the long run in economics about?

• All resources are variable

• A set amount of time

• Specialization limits

• Economies of scale

What is the additional output generated from hiring one additional worker called?

• Total product

• Economies of scale

• Marginal product

• Specialization