In the movie Moneyball, Oakland Athletics general manager, Billy Beane was able to _________ the marginal cost of labor by ____________________. This meant that the marginal product of labor ___________ and profits ________.

1. Lower; hiring the most expensive free agents; decreased; increased.
2. Increase; hiring less expensive, undervalued players; decreased; increased slightly.
3. Lower; employing undervalued, overlooked players, increased; increased.
4. Ignore; hiring players that were the best in their position; fell; increased sharply.

Now that the economy is growing rapidly Lincoln Electric will see demand ____________ for its products. This would cause Lincolnto ____________ production and overall compensation for Lincoln workers would ________.

1. Fall; increase; increase
2. Increase; increase; increase
3. Fall; decrease; decrease
4. Increase; decrease; increase
5. None of the above due to Lincoln's 'piece work' model of compensation.

Supposethe city of Cleveland imposes a living wage on all businesses there. Lincoln Electric will pay workers_____________________ rather than______________________.

1. Their average product of labor x the price ofwelding machine; the marginal product of labor x the price of welding machines.
2. Their marginal product of labor x theprice ofwelding machines; a wage that is based on supply and demand conditions.
3. A higher wage then they earn currently with the expectation of greater productivity; the exploitative wages their over-worked employees now get.
4. A wage that is above market equilibrium and higher than the marginal revenue product of labor for Lincoln workers; based on the marginal product of labor of each machine produced.