Diminishing marginal product of labor occurs when:
a. adding another unit of labor increases output, but not by as large a margin as the previous unit of labor employed.
b. the average product of labor begins to rise
c. adding another unit of labor increases output by a larger margin than the last unit of labor employed.
d. all inputs are varied simultaneously in the same proportion.
a
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Which of the following does NOT shift the U.S. aggregate demand curve?
A) an increase in GDP in Japan B) an increase in the supply of money C) a decrease in taxes D) a decrease in the price level
Employers often end up laying off more workers during a recession due to ________
A) higher corporate taxes B) flexible wages C) tight monetary policy D) downwardly rigid wages
Consider a market that is in equilibrium. If it experiences an increase in demand, what will happen? The demand curve will shift to the:
A. right, and the equilibrium price and quantity will rise. B. right, and the equilibrium price will increase and the equilibrium quantity will decrease. C. right, and the equilibrium price and quantity will fall. D. left, and the equilibrium price and quantity will fall.
The problems of inflation are caused primarily by: a. greed on the part of sellers
b. uncertainty about inflation. c. too much incentive to lend money. d. greed on the part of union leaders. e. governments' actions to reduce the effects of inflation.