In the Two-Sector Specific-Factors Model, as More Labor Is Added

question 129

Multiple Choice

In the two-sector specific-factors model, as more labor is added to a sector, we will see:

• A) the total product of labor decrease.
• B) the marginal product of labor increase.
• C) the average product of labor remains constant.
• D) the marginal product of labor decrease.

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Definitions:

Hierarchy of Effects

A framework outlining the steps a consumer takes, beginning with awareness and progressing through knowledge, appreciation, preference, conviction, to ultimately making a purchase.

Awareness

The state or level of consciousness where individuals or groups realize the existence or importance of something.

Consumer's Ability

The capacity of a consumer to make informed, effective, and efficient choices about the use of resources.

Product Brand

The identity given to a specific product or range of products by its manufacturer through branding.