Diminishing marginal product of labor occurs when adding another unit of labor
A) increases output by an amount larger than the output added by the previous unit of labor.
B) decreases output by an amount smaller than the output added by the previous unit of labor.
C) changes output by an amount smaller than the output added by the previous unit of labor.
D) decreases output.
C
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If the demand for KFC chicken is price inelastic, a fall in the price of KFC chicken will raise the total revenue
Indicate whether the statement is true or false
Which of the following will bring about an inward shift of a production possibilities curve [PPC]?
a. A decrease in the amount of resource employment b. An increase in the working-age population c. An increase in unemployment d. A decrease in the availability of natural resources e. An increase in the amount of capital available
If economic fluctuations originate on the supply side,
a. there will be no relationship between unemployment and inflation. b. real wage increases will be necessary to eliminate unemployment. c. inflation and unemployment will be negatively related. d. inflation and unemployment will be positively related.
Mexico's gains from NAFTA have benefited mostly:
a. unskilled workers. b. semi-skilled workers. c. higher-income workers. d. agricultural workers.