Question

1. A decrease in the supply of fast-food restaurant workers could be a result of:

a) lower wages paid to workers in other types of restaurants

b) higher wages paid to fast- food restaurant workers

c) higher wages paid to workers in other types of restaurants

d) decrease demand for fast food

2. The change in total product by adding one more unit of labor is

a) the marginal product of labor

b)total product

c)the marginal revenue product

3. When adding additional inputs, the total product increases at a decreasing rate is referred as:

a)law of demand

b) the law of diminishing marginal product

c) the value of the marginal product of labor

4. The demand of labor is derived from:

a) the total product

b) the marginal product of capital

c) the marginal revenue product of labor

Answer 1

1) c

When higher wages are offered in other types of restaurants supply in fast food restaurants decreases.

2) a

Marginal product of labor is the change in total product by adding one more unit.

3. b

It shows law of diminishing marginal product

4) c

Demand for labor is derived from the marginal revenue product of labor