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Q Question 1 The process by which union members and the firm’s management negotiate a contract is called Question 2 A resource’s marginal product is Question 3 A firm hires labor in a perfectly competitive labor market. If the wage rate is $44, the firm should hire 1 out of Question 4 Because leisure is a normal good, an increase in income Question 5 Derived demand refers to

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1.Selected Answer: A. collective bargaining 2.Selected Answer: C.the additional output produced by one additional unit of that resource, other things constant 3.Selected Answer: B.all units of labor whose marginal revenue product is greater than or equal to $44 4.Selected Answer: A. increases the demand for leisure time and reduces the amount of time allocated to market work and non market work 5.Selected Answer: B.demand for a resource derived from the demand for the product produced by that resource