Assume that a country experiences a reduction in productivity that lowers the marginal product of labor for any given level of labor. In this case, the:

Question

BlackTom AI · Accepted Answer

To analyze the effect of a decrease in productivity that reduces the marginal product of labor (MPL) at every level of labor, consider how MPL interacts with the demand for labor and with the curve shapes in a typical downward-sloping labor demand.
Option a: 'labor supply curve shifts to the right.' A change in MPL affects the demand for labor, not the willingness of workers to supply labor at a given wage. The labor supply curve is determined by workers' preferences, population, and factor market participation, so a productivity shock does not directly shift the supply curve. Therefore this option misattributes the effect to the supply side.
Option b: 'labor supply curve shifts to the left.' Similar to option a, this would imply fewer workers are willing to work at each wage, due to factors like population decline or higher reservation wages. A productivity change in the employer’s side does not directly cause a leftward shift in labor supply, so this is not the correct mechanism for a productivity shock.
Option c: 'labor demand curve shifts upward and to the right.' An upward and rightward shift in labor demand would indicate that for each wage, firms are demanding more labor, which is inconsistent with a fall in productivity. If MPL falls, the value of each additional worker to the firm decreases, pushing demand downward and to the left, not upward and to the right. Thus this option describes the opposite effect.
Option d: 'labor demand curve shifts downward and to the left.' A reduction in MPL means each unit of labor becomes less productive, so the value of an additional worker to the firm falls. Firms would hire less labor at any given wage, which translates into a downward and leftward shift of the labor demand curve. This captures the correct mechanism: lower productivity reduces the quantity of labor demanded across wages, shifting the demand curve accordingly.
Putting the pieces together, the only option that correctly links a drop in marginal product of labor to a decrease in the quantity of labor demanded at every wage is option d. The other choices either misidentify the affected side of the market (supply vs. demand) or describe the wrong direction of the shift given lower productivity.

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Assume that a country experiences a reduction in productivity that lowers the marginal product of labor for any given level of labor. In this case, the:

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BU.220.610.51.FA25 M3 Quiz- Requires Respondus LockDown Browser

Assume that a country experiences a reduction in productivity that lowers the marginal product of labor for any given level of labor. In this case, the:

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类似问题

If the real wage exceeds the MPL at the current level of labor, then the firm should

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