Have you read Freakonomics?

1
Have you read Freakonomics?

• No, never heard of it.
• Ive heard of it, but never read it.
• I have read parts of it.
• I read the whole thing.

2
The marginal product of labor is the

1. Amount of output divided by amount of labor
   input.
2. Amount of output if only one unit of labor is
   used.
3. Extra output gained from adding one unit of
   labor.
4. Amount of time it takes to produce one unit of
   output.

3
What is the marginal product of labor if 4 units
of labor are currently used?
No of workers Output
1 10
2 18
3 25
4 28
5 30

• 6
• 5
• 30
• 7
• 2

4
If a legal minimum wage is set higher than the
equilibrium wage

• A) There will be an excess supply of labor at
  minimum wage.
• B) There will be excess demand for labor at
  minimum wage.
• C) Supply of labor will equal demand for labor
  at minimum wage.