In figure 1, labor is a: fixed input variable input sunk input technology none o
ID: 1217782 • Letter: I
Question
In figure 1, labor is a: fixed input variable input sunk input technology none of the above In figure 1, the movement from f(L) to f(L) could be caused by: improved technology worsening technology less labor hired more labor hired none of the above In figure 1, the curve becomes flatter as labor increase because of: decreasing returns to scale increasing returns to scale the MP of labor falling technological change none of the above In figure 1, the movement from f'(L) to f(L) could be caused by: reduced labor input d. reduced capital input improved technology all of the above none of the above Economic growth is the change in: the price level the unemployment rate real GDP all of the above none of the aboveExplanation / Answer
b. As labor is increasing, output is rising meand labor is variable input. a. Improved technology. A better technology improves production technique thereby increases production with given input. c. The MP of labor is falling. As more of labor is hired in relation to fixed capital input, its marginal product will fall b. reduced capital input. d. All of the above.