The theoretical basis for zero marginal productivity of labor was the concept of ?

Related Mcqs:

1. A combined measure of productivity that takes account of both labor and capital productivity is known as ?

   A. total exploitation
   B. labour/capital productivity
   C. total factor productivity
   D. total productivity

2. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal)
   B. slope upward
   C. slope downward
   D. be U-shaped.

3. If marginal benefit is greater than marginal cost, a rational choice involves ?

   A. no more of the activity.
   B. less of the activity
   C. more of the activity
   D. more or less, depending on the benefits of other activities

4. If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?

   A. an import subsidy
   B. a quota
   C. comparative advantage
   D. an export subsidy

5. If both marginal cost and marginal revenue increase, a firm ?

   A. Should increase output
   B. Should reduce output
   C. will require further information on how to respond
   D. Should not change output

6. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

   A. reduces; reduces
   B. reduces; increases
   C. increases; increases
   D. increases; reduces

7. If a marginal revenue exceeds marginal cost, a monopolists should?

   A. increase should
   B. decrease output
   C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
   D. raise the price

8. When marginal revenue equals marginal cost ?

   A. Total revenue equals total cost
   B. There is the biggest positive difference between total revenue and total cost
   C. There is the biggest negative difference between total revenue and total cost
   D. Profits are Zero

9. If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?

   A. Reduce output
   B. Increase output
   C. Leave output where it is:
   D. Increase costs

10. If marginal revenue equals marginal cost ?

    A. No profit is being made
    B. Total revenue equals total cost
    C. Profits are maximised
    D. Producing another unit would increase profits