For a firm producing in a perfectly competitive product market, the marginal revenue product of labor eventually
a. falls due to diminishing marginal returns to labor
b. rises due to diminishing marginal returns to labor
c. falls due to a falling product price
d. falls due to a rising product price
e. rises due to falling marginal productivity of labor
A
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The employment effect of a minimum wage increase is greater the
A. more elastic the demand for labor. B. less elastic the demand for labor. C. more the wage ceiling shifts the supply curve. D. more the wage floor shifts the demand curve.
Which of the following forms of unemployment probably imposes the greatest personal costs?
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) voluntary unemployment.
A rational decision maker compares the expected marginal cost to the expected marginal benefit of any activity
a. True b. False
Labor resources include
a. only physical exertion b. only the resources used in the production of other resources c. only skilled labor d. both physical and mental exertion e. the expenditure of people's effort in producing goods, but not services