Which of the following is a reason why workers typically require higher wages in order to work additional hours?
a) The diminishing marginal revenue product of labor.
b) The diminishing marginal utility of additional income.
c) The decreasing value of leisure time that is given up.
d) The decreasing opportunity cost of labor.
Answer: b) The diminishing marginal utility of additional income.
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The use of foreign exchange reserves to keep exchange rates constant over time is called
A) a fixed exchange rate system. B) the Bretton Woods system. C) a fiscal fix. D) a floating exchange rate system.
A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500 . From this, she can determine
a. her profits are not being maximized b. she has earned zero economic profits c. she has earned economic profits of $1,000 d. she has earned economic profits of $1,500 e. she should sell fewer sandwiches
Which of the following is true?
a. Changes in personal costs and benefits will exert a predictable influence on the choices of people. b. If one individual gains from an economic activity, then someone else must lose. c. If a good is provided free to an individual by government, its production will not consume valuable scarce resources. d. If the intentions behind a policy are good, you can be assured that the outcome will be desirable.