One Reason Why, in the Short Run, the Marginal Product

question 35

Multiple Choice

One reason why, in the short run, the marginal product of labour might increase initially as more workers are hired is that

• A) the first workers hired get to use the best equipment.
• B) specialisation allows a worker to focus on one task, thereby increasing her proficiency at that task.
• C) the best workers are hired first and later hires are not as skillful.
• D) beyond some point, a firm has hired too many workers.

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Definitions:

Work Disincentives

Factors or conditions that discourage individuals from seeking or maintaining employment, often due to economic policies or social benefits structures.

Anti-Poverty Programs

Government or non-government initiatives designed to reduce or eliminate poverty by providing support and resources to the needy.

Inefficiency

The state of not achieving maximum productivity or economic benefit from resources due to suboptimal allocation, processes, or decisions.

Poverty Line

A threshold income level below which an individual or family is considered financially incapable of meeting basic living expenses.