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The marginal physical product of labor increases when more laborers are added to

  The marginal physical product of labor increases when more laborers are added to
                            production, although it eventually falls as laborers are continually added. The explanation
                            for the initial increase is the

a.low wage rates at the beginning of production

b.more skilled labor at the beginning of production

c.marginal revenue product is less than the marginal physical product

d.marginal revenue product decreases at every production level

e.gains from the division of labor and specialization

132.              Marginal physical product is measured in terms of

Diff:4a.added units of labor

b.added units of output

c.total output divided by total labor

d.total value of output

e.added dollars to the firm

133.              To determine the marginal physical product of labor, you must

a.hold total output constant and calculate how much revenue an additional worker
generates

b.hold capital constant and calculate how much revenue an additional worker generates
hold capital constant

c.hold all other factors of production constant and calculate how much output an
additional worker produces

d.hold labor constant and calculate how much output an additional worker produces

e.hold labor constant and calculate how much revenue an additional worker generates

134.              The marginal revenue product of labor is

a.how much labor can be purchased with the revenue from the sale of one more unit of
the good

b.how much the marginal revenue changes when you add more labor

c.the same as the marginal revenue product of capital when the markets for labor and
capital are in equilibrium

d.determined by the wage rate

e.the contribution to total revenue made by the marginal laborer

135.              If the MPP of labor is positive, the total revenue will grow with each additional worker
                            hired. Yet firms stop hiring before MPP reaches zero because

a.the firm’s physical capacity (factory) is limited, that is, the firm’s ability to hire is
limited by space

b.there isn’t a sufficient supply of workers at the wage rate paid by the firm

c.the wage rate would have to increase, which reduces MPP

d.they maximize their gains from hiring at MRP = wage rate and that does not occur at
MPP = zero

e.marginal revenue product will become negative before MPP does

136.              What is the relationship between the MRP and MPP of labor?

a.MRP is MPP multiplied by the price of the good.

b.MPP is MRP multiplied by the price of the good.

c.MRP is MPP divided by the price of the good.

d.MPP is MRP divided by the price of the good.

e.MPP is the wage rate that in equilibrium equals MRP.

137.              Which of the following would cause the demand for labor to change?

a.changes in the supply curve of labor

b.changes in the workers’ opportunity costs

c.changes in the wage rate

d.movements along the demand curve for labor

e.changes in the price of the good

138.              The number of workers hired by a firm at a specific wage rate can be determined if you
                            know the

a.price of the good

b.supply curve of labor

c.MPP of labor

d.MLC (marginal labor cost)

e.MRP of labor

139.              If every worker earns the same wage rate, then

a.MPP = MRP for all workers

b.the firm cannot earn a profit

c.every worker except for the last hired generates an MRP equal to the wage rate

d.only the last worker hired generates an MRP equal to the wage rate

e.all workers hired generate an MRP equal to the wage rate

140.              In the late 1970s, people feared that the introduction of computers into the workplace
                            would create enormous unemployment because secretaries and data entry clerks would be
                            unemployed. This was a baseless fear, at least for the long run, because

a.computers and employment are unrelated

b.the elasticity of work with respect to technology is positive

c.technologies that enhance productivity will reduce the supply of labor

d.technologies that enhance productivity will reduce the demand for labor

e.technologies that enhance productivity will increase the demand for labor

Dec 12 2019 View more View Less

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