Which of the following describes a difference between the marginal product of labor and the marginal revenue product of labor?
A) The marginal product of labor declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product of labor declines as each additional worker is hired because of diseconomies of scale.
B) The marginal product of labor is inelastic. The marginal revenue product of labor is elastic.
C) The marginal product of labor declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product increases as each additional worker is hired because of increases in the productivity of labor.
D) The marginal product of labor measures the change in output as additional workers are hired. The marginal revenue product measures the change in revenue as additional workers are hired.
D
You might also like to view...
Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole
A) slightly faster than B) approximately equal to C) less than half as fast as D) almost twice as fast as
Which of the following will cause movement along the reserve demand schedule?
a. a change in the price level b. a change in real GDP c. a change in tax rates d. a change in interest rates
At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?
Relative to nonunion wages, one reason union wages are
A. Lower is because unions exclude workers from the market, which hurts their ability to raise wages. B. Higher is because unions are more likely in capital-intensive industries where wages tend to be higher. C. Higher is because unions have workers that contribute more to society. D. Lower is because the percentage of the workforce that is unionized is declining.