When Firms Add Workers and Find That the Additional Workers

question 29

Multiple Choice

When firms add workers and find that the additional workers add less to output than their predecessors did, they are experiencing

• A)the division of labor.
• B)the law of large numbers.
• C)diminishing returns.
• D)diminishing marginal utility.

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Definitions:

Low-Ability Workers

Individuals with limited skills or qualifications, often facing difficulties in competitive job markets.

Minimum Wage

A legislative baseline salary per hour that employers must pay their employees, aiming to reduce poverty and ensure basic financial security.

Unemployed Workers

Individuals in the labor force who are without a job and are actively seeking employment.

Demand D1

This represents a specific demand curve in economic analysis, showing the relationship between the price of a good and the quantity demanded.