If We Graph the Average Product of Labor as a Function

question 30

Multiple Choice

If we graph the average product of labor as a function of the quantity of capital employed by a firm operating along its production function.When the capital per worker increases,the average product of labor curve is

• A) upward sloping
• B) shifts upwards
• C) downward sloping
• D) shifts downwards

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Definitions:

Intensive Margin

The degree to which factors of production, such as labor, are utilized more intensely to increase output in the short term.

Consumption Changes

Variations in the amount and types of goods and services used by households over time.

Barley Crop

A cereal grain that is used worldwide as fodder for animals, as a source of fermentable material for beer and certain distilled beverages, and as a component of various health foods.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.