In the Short Run, Marginal Product of Labour Increases at First

question 139

Multiple Choice

In the short run, marginal product of labour increases at first and then falls because

• A)as more labour is hired, they are not as skilled as the first ones hired.
• B)there are fewer opportunities for division of labour and specialisation when fewer workers are hired.
• C)managerial inefficiency sets in when a firm gets too large.
• D)the new workers do not have as much experience as those who have been with the firm for a long time and therefore are not as productive.

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Definitions:

Latency Period

A stage in psychosexual development, occurring from about age six to puberty, during which sexual instincts and activities are less pronounced.

Freudian Concepts

Theories and ideas proposed by Sigmund Freud that focus on the unconscious mind, childhood experiences, and psychosexual development as central elements of personality.

Case Studies

In-depth examinations of single subjects or events, often used in psychology and the social sciences to explore complex issues in real-life contexts.

Freud's Theory

A theory proposed by Sigmund Freud that emphasizes the importance of unconscious processes in shaping behaviors, personality development, and psychopathologies.