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Basic Question 6 of 11
The law of diminishing returns states that if a given number of hours of labor use more capital (with the same technology), then the
B. additional output that results from the additional capital gets smaller as the amount of capital increases.
C. total output that results from the additional capital gets smaller as the amount of capital increases.
A. additional output that results from the additional capital gets larger as the amount of capital increases.
B. additional output that results from the additional capital gets smaller as the amount of capital increases.
C. total output that results from the additional capital gets smaller as the amount of capital increases.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
contrast capital deepening investment and technological progress and explain how each affects economic growth and labor productivity;
demonstrate forecasting potential GDP based on growth accounting relations;
CFA® 2025 Level II Curriculum, Volume 1, Module 9.