Questions: Question 4 (30 points) Match each term with the correct definition: If the amount of labor and other inputs employed is held constant, then the greater the amount of physical capital already in use, the less an additional unit of capital adds to production. It involves education, training, experience and other factors that affect the value of a worker's marginal product. People who create new economic enterprises. 1. Diminishing returns to physical capital 2. Entrepreneurs 3. Human capital

Question 4 (30 points)
Match each term with the correct definition:

If the amount of labor and other inputs employed is held constant, then the greater the amount of physical capital already in use, the less an additional unit of capital adds to production.
It involves education, training, experience and other factors that affect the value of a worker's marginal product.
People who create new economic enterprises.
1. Diminishing returns to physical capital
2. Entrepreneurs
3. Human capital

Transcript text: Question 4 (30 points) Match each term with the correct definition: If the amount of labor and other inputs employed is held constant, then the greater the amount of physical capital already in use, the less an additional unit of capital adds to production. $\qquad$ It involves education, training, experience and other factors that affect the value of a worker's marginal product. $\square$ People who create new economic enterprises. 1. Diminishing returns to physical capital 2. Entrepreneurs 3. Human capital

Solution

Solution Steps

Step 1: Matching the first definition

The first definition describes the concept of diminishing returns to physical capital. It states that with labor and other inputs held constant, increasing physical capital eventually leads to smaller and smaller increases in production.

Step 2: Matching the second definition

The second definition describes human capital. It refers to the qualities of a worker that contribute to their productivity, including education, training, and experience.

Step 3: Matching the third definition

The third definition describes entrepreneurs. These are individuals who take on the risk and initiative to establish new businesses or economic ventures.