Because the Value of Marginal Product Diminishes as the Quantity

question 138

Multiple Choice

Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires.

• A) lower; more
• B) higher; more
• C) lower; fewer
• D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.

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Definitions:

Construct Validity

The extent to which a test or measure accurately assesses the theoretical concept it is intended to measure.

Measurement Errors

The difference between a measured value and the true or accepted value, arising from limitations in the measurement process.

Strong Situation

A situation that elicits similar behaviors from most people, minimizing individual differences in response.

Court Hearing

A session held before a judge or magistrate in which the legal issues or facts of a case are presented and determined.