Labor Markets and Productivity
From Diego Rivera Murals, Detroit Institute of Arts
What is the most that you would be
willing to pay to attend a live
performance of the reunited Led
Zeppelin in Campbell Hall?
The marginal product of labor is the
A) Amount of output divided by
amount of labor input.
B) Amount of output if only one
unit of labor is used.
C) Extra output gained from
adding one unit of labor.
D) Amount of time it takes to
produce one unit of output.
What is the marginal product of labor if 4
units of labor are currently used?
A)
B)
C)
D)
E)
6
5
30
7
2
No of
workers
1
Output
2
18
3
25
4
28
5
30
10
Clicker Reflex Test
• Press the letter “A” on your clicker.