As a Firm Hires More Labor and Each Worker Is

question 90

Multiple Choice

As a firm hires more labor and each worker is able to specialize,what happens to each additional worker's marginal productivity?

• A) It increases at first,then decreases.
• B) It increases continuously.
• C) It decreases continuously.
• D) It decreases at first,then increases.
• E) It remains constant,no matter how much labor is hired.

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Definitions:

Coupon Rate

The interest rate stated on a bond when issued, which represents the percentage of interest to be paid to the bondholder.

Short-Term Interest Rates

Interest rates on loan or deposit instruments that have a maturity of one year or less, often serving as indicators of the overall direction of the economy.

Long-Term Rates

Long-term rates usually refer to interest rates or bond yields on long-term debt, indicating the cost or return on investments or loans that mature over a longer period.

Interest Rate Price Risk

The risk that an investment's value will change due to a fluctuation in the absolute level of interest rates.