The Diminishing Marginal Product of Labor Exists When the Last

question 64

Multiple Choice

The diminishing marginal product of labor exists when the last worker hired produces:

• A) more output than the previous worker.
• B) more value than the previous worker.
• C) less value than the previous worker.
• D) the same amount of output as the previous worker.
• E) less output than the previous worker.

---

Definitions:

Drive

An internal motivating force that compels action towards fulfilling a need or achieving a goal.

Incentive

Something that motivates or encourages someone to do something, often used in contexts of motivation and behavioral economics.

Need

A requirement for something because it is essential or very important, often referring to something necessary for psychological or physical survival.

Drive Reduction

A theory in psychology that motivation arises from biological needs driving behavior to return to a state of homeostasis or balance.