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

question 67

Multiple Choice

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

• A) as more labour is hired, it is not as skilled as the first labour 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:

Consumption

Consumption involves the use of goods and services by households, and it's a primary component of economic activity.

Lottery

A lottery is a form of gambling that involves the drawing of numbers for a prize, often administered by state or federal governments.

Conspicuous Consumption

The act of spending money on and acquiring luxury goods and services to publicly display wealth and social status.

Thorstein Veblen

An American economist and sociologist known for his theory of the leisure class and critique of consumer culture.