Figure 7-2 Shows the Total Product Curve for Different Levels

question 13

Multiple Choice

Figure 7-2 shows the total product curve for different levels of a variable input,labor.
Figure 7-2
-When the quantity of labor employed lies between points D and E in Figure 7-2:

• A)marginal product reaches a maximum and then declines.
• B)marginal product reaches a maximum and then becomes negative.
• C)total product is increasing at a decreasing rate.
• D)total product is decreasing.

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Definitions:

Perceptual Constancy

The psychological phenomenon that allows us to perceive objects as unchanging despite changes in sensory input.

Interposition

A visual cue in which one object partially blocks another, suggesting depth perception.

Sensory Interaction

The principle that one sense can influence or interact with another; the interaction of the senses to enhance the perception of the world.

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does higher up in the sky.