As a Firm Hires More Labor in the Short Run

question 254

Multiple Choice

As a firm hires more labor in the short run, the

• A)level of total product stays constant.
• B)output per worker rises.
• C)extra output of an additional worker may rise at first, but eventually must fall.
• D)costs of production are increasing at a fixed rate per unit of output.

---

Definitions:

Stereotypes

Oversimplified and widely held beliefs about the characteristics, attributes, and behaviors of a particular group of people.

Exaggerate Differences

The act of making distinctions between entities more pronounced or significant than they actually are.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more conflicting beliefs, ideas, or values at the same time.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.