Question

The following are correct statements about the Marginal Productivity of Labor (MPL), EXCEPT:

Question 12 options:

	It is the increase in production per worker generated by technological innovations
	Is the increase in total production coming from an increase in one unit of labor
	Is increasing at early stages of production because the beneficial effect of division of labor in early stages of production.
	It will eventually decline because additional workers will eventually over-saturate the production process.

The following are correct descriptions about the Efficiency Wage model, EXCEPT:

Question 15 options:

	This model predict than if One Firm increases its salaries above market equilibrium, their productivity in the short term will increase.
	This model predict than if All Firm increase simultaneously their salaries above market equilibrium, their productivity in the short term will increase.
	This model predict that by increases its salaries, a Firm benefits in the short term from lower turnover of its workers.
	This model predict that by increases its salaries, a Firm benefits from increase in purchasing power of its workforce.

Based on class discussion, the following are corrected descriptions about sectors and dynamics in the Labor Market, EXCEPT:

Question 16 options:

	Low Skilled Labor has a more Elastic Demand than the High Skilled Labor sector.
	Low Skilled Labor has a more Inelastic Supply than the High Skilled Labor sector.
	An aging population could lead to a contraction of the Labor Force and consequent increase of Wages in the market equilibrium.
	Higher Pension Benefits will decline the motivation to work, with the consequent decline of Wages in the market equilibrium.

Answer 1