2. TRUE AND FALSE (write True or False against each answer. Do not use T or F) a. A profit maximizing firm will employ labor up to a point where MRP=MLC. TRUE b. If MRP is less than the wage, then the firm should hire more workers. FALSE C. A decrease in the price of output, will decrease the demand for labor. TRUE d. MRP and MPP are similar in the sense that MRP is nothing but the MPP sold at a price. e. Backward Bending Supply curve is a concept that states that at higher wages many workers might not prefer more leisure than work. f. Demand for labor is called derived demand because the demand for workers is costly and because of union demands. g. If mpp is decreasing, total output must also be decreasing h. Technological change that makes workers more productive should, all things being equal, increase demand for labor. i. Medicaid is an example of cash assistance poverty program. j. The first quintile represent the richest 20% of the population on the Lorenz graph k. A Gini co-efficient of zero would present the Lorenz Diagonal -indicating most equal distribution of income. 1. For the rich, the main source of income is most likely to be wages and salaries