The Marginal Product of Labor Initially Rises as More Labor

question 36

Multiple Choice

The marginal product of labor initially rises as more labor is employed because of:

• A) division and specialization of labor.
• B) constant returns to scale.
• C) total factor productivity.
• D) an increase in profits from the additional output produced.
• E) a fall in the cost of hiring additional labor.

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Definitions:

Promissory Note

A financial document in which one party promises to pay a certain sum of money to another party under agreed terms.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Dishonored

Refers to a financial instrument, such as a check or promissory note, that has not been paid upon presentation because of insufficient funds or other reasons.

Interest Revenue

Income received from investments in bonds, loans, or other interest-bearing instruments, representing the compensation for lending funds or capital.