MRU18.2: THE MARGINAL PRODUCT OF LABOR

Which of the following gives a labor demand-related reason that American janitors earn more than janitors in India? - The U.S. dollar is stronger than the Indian rupee. - There are more janitors in India than in the U.S. - American office buildings are more productive. - American office buildings are harder to clean than Indian office buildings.

A: American office buildings are more productive.

Why does a market labor supply curve have a positive slope? - As wages rise, product demand will fall. - As wages rise, fewer and fewer employers are willing to hire workers. - As wages rise, more and more workers will enter the market. - As wages rise, all workers will be willing to work more hours.

A: As wages rise, more and more workers will enter the market.

How might an individual's supply curve for labor differ from the market supply curve for labor? - At high wages, an individual's labor supply curve may have a negative slope. - At low wages, an individual's labor supply curve may have a negative slope. - At low wages, the market supply curve for labor may have a negative slope. - At high wages, the market supply curve for labor may have a negative slope.

A: At high wages, an individual's labor supply curve may have a negative slope.

Which of the following is true regarding the marginal product of labor? - It declines as more labor is used. - It rises as more labor is used. - It declines as more capital is used. - It rises as the product price falls.

A: It declines as more labor is used.

The demand for labor is _______ demand. - a household - an upward-sloping - a derived - a marginal

A: a derived

If the wage falls, firms will hire _______ workers because _______. - more; fewer workers will have a wage that exceeds the product price - fewer; more workers will have a wage that exceeds the product price - fewer; fewer workers will have a marginal product of labor that exceeds the wage - more; more workers will have a marginal product of labor that exceeds the wage

A: more; more workers will have a marginal product of labor that exceeds the wage

According to the video, the marginal product of labor is: - the increase in the firm's costs created by hiring an additional laborer. - the increase in the firm's workforce created by hiring an additional laborer. - the increase in a firm's revenues created by hiring an additional laborer. - the increase in a firm's output created by hiring an additional laborer.

A: the increase in a firm's revenues created by hiring an additional laborer.

In the market for a certain type of labor, the wage for that labor is determined by: - the intersection of labor demand and labor supply. - the intersection of product demand and labor supply. - the intersection of labor demand and product supply. - the intersection of labor demand and product demand.

A: the intersection of labor demand and labor supply.

The demand curve for labor is derived from: - the supply curve for the product produced by the labor. - the supply curve for labor. - the marginal product of labor. - the marginal costs of production.

A: the marginal product of labor.

Firms will continue to hire more employees as long as: - the marginal product of labor is less than the product price. - the wage exceeds the marginal cost of production. - the wage is less than the marginal product of labor. - the product price exceeds the wage.

A: the wage is less than the marginal product of labor.