When a production function exhibits a diminishing, but positive, marginal product of labor,
a. output increases, but at an increasing rate, as more workers are employed.
b. output increases, but at a decreasing rate, as more workers are employed.
c. output declines as more workers are employed.
d. the effects on marginal product are ambiguous.
b
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Which of the following describes the impact of unions on wages?
a. The high wages negotiated by the union drive up wages in the nonunion sector by extension. b. Collective bargaining has the effect of lowering wages in general to keep more people employed. c. By restricting membership, the union drives up union wages and drives down nonunion wages. d. The union has the collective power to enforce equilibrium wages for everyone.
Referring to Table 4.1, Box G should be filled with 
A. $115. B. $125. C. $0. D. $110.