Macroecon majors help!!?

Question

According to the table, when Tom and Jane get their first electric stapler their productivity increases by 240 envelopes per hour, but when they get their second electric stapler their productivity increases by only 120 envelopes per hour. This is an example of which of the following?

A. Compound interest

B. Capital consumption

C. Diminishing returns to capital

D. Human capital

E. Absence of private property rights

Answer 1

diminishing returns to capital

Answer 2

C. The other two nailed it. Think of it this way...you can add as many staplers as you want, but without adding more people to help staple, the stapler is just going to sit there unused! So your return on the staple (value vs cost) goes down...or diminishes.

Answer 3

C