Suppose the Marginal Product of Labor (MPL)is Greater Than the Real

question 40

Multiple Choice

Suppose the marginal product of labor (MPL) is greater than the real wage.If the real wage remains constant,then we should expect ________.

• A)an increase in employment and decrease in the MPL
• B)an increase in the supply of labor and decrease in the MPL
• C)an increase in leisure and no change in the MPL
• D)an increase in the supply of labor and no change in the MPL

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Definitions:

External Locus

The belief that one's successes or failures result from external factors beyond their control, contrasted with an internal locus of control.

Optimist

A person inclined to anticipate the best possible outcome, maintaining a hopeful and positive outlook on life and future events.

Pessimist

An individual who tends to see the worst aspect of things or believe that the worst will happen.

Reactivity

The tendency of individuals to change their behavior in response to being observed or knowing they are being studied.