A firm used to produce a product using three units of labor and one unit of capital. The firm discovers that it can produce more output at a lower cost if it combines two units of labor with two units of capital. This is an example ofGroup of answer choicesan innovation.an invention.increasing returns.economic growth

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.Group of answer choicesprivate enterpriseScratchcommunist economic systemScratchmixed economyScratchsocialisticScratchcapitalisticScratch

The extra amount of output a firm can generate by adding one more unit of labor is called the product of labor. (Insert a single word.)

The extra revenue received by a firm from selling the output obtained from an extra unit of labour is called:Group of answer choicesthe average product of labourthe marginal revenue product of labourthe marginal product of labourdiminishing marginal product

Innovation involves only the creation of new products, not the improvement of existing ones.Group of answer choicesTrueFalse

Thinking up a new idea is an example ofGroup of answer choicesan invention.an innovation.human capital accumulation.social overhead capital.