As the Amount of Labor Input Increases ________

question 40

Multiple Choice

As the amount of labor input increases ________.This means that the marginal product of labor (MPL) ________.

• A)the slope of the production function increases;goes up
• B)the slope of the production function falls;declines
• C)the slope of the production function falls;goes up
• D)the slope of the production function increases;declines
• E)none of the above

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Definitions:

Present Value

The contemporary valuation of a future amount of money or cash flow sequence, based on an identified rate of return.

Corporate Profits Tax

A tax imposed by governments on the income of corporations, differentiating from personal income taxes.

Ceteris Paribus

A Latin phrase that means "all other things being equal," used in economics to isolate the effect of one variable changes while holding others constant.

Investment

Allocating financial assets or resources in the hope of receiving future income or profit.