12. (Exhibit: Total Product) When hiring units of labor between zero and L1 units of labor, which of the following statements is true? a. The marginal product of labor is increasing. b. The marginal product of labor is decreasing. c. Total product is increasing at a diminishing rate. d. None of the above statements is true.

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Chapter1: Making Economics Decisions
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STAPLES
Units of labor per day
12. (Exhibit: Total Product) When hiring units of labor between zero and L1 units of labor, which
of the following statements is true?
a. The marginal product of labor is increasing.
b. The marginal product labor is decreasing.
c. Total product is increasing at a diminishing rate.
d. None of the above statements is true.
13. "Diminishing marginal returns" means that:
a. each additional unit of an input used will decrease output.
b. each additional unit of an input used will increase output, but by smaller and smaller
amounts.
c. each additional unit of an input used will increase output by larger and larger
amounts.
d. the firm is maximizing profit.
14. A variable factor of production is defined in the text as one:
a. that can perform several different functions.
b. that is able to produce more or less during some time period.
c. whose quantity can be changed in a particular time period.
d. A and C are true, but not B.
15. The law of diminishing marginal utility indicates that the slope of the marginal utility curve
eventually becomes:
a. negative.
b. vertical.
c. horizontal.
d. positive.
16. Which of the following is not an explanation as to why the demand curve is negatively
sloped?
Transcribed Image Text:STAPLES Units of labor per day 12. (Exhibit: Total Product) When hiring units of labor between zero and L1 units of labor, which of the following statements is true? a. The marginal product of labor is increasing. b. The marginal product labor is decreasing. c. Total product is increasing at a diminishing rate. d. None of the above statements is true. 13. "Diminishing marginal returns" means that: a. each additional unit of an input used will decrease output. b. each additional unit of an input used will increase output, but by smaller and smaller amounts. c. each additional unit of an input used will increase output by larger and larger amounts. d. the firm is maximizing profit. 14. A variable factor of production is defined in the text as one: a. that can perform several different functions. b. that is able to produce more or less during some time period. c. whose quantity can be changed in a particular time period. d. A and C are true, but not B. 15. The law of diminishing marginal utility indicates that the slope of the marginal utility curve eventually becomes: a. negative. b. vertical. c. horizontal. d. positive. 16. Which of the following is not an explanation as to why the demand curve is negatively sloped?
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