Suppose That with Two Fro-Yo Machines, 12 Workers Produce Eight

question 205

Multiple Choice

Suppose that with two fro-yo machines, 12 workers produce eight quarts of fro-yo.If the marginal product of the thirteenth worker is two quarts, then

• A)thirteen workers produce ten quarts
• B)thirteen workers produce two quarts
• C)the thirteenth worker alone produces ten quarts
• D)the law of diminishing returns cannot be operating in this example
• E)diminishing returns must begin with the thirteenth worker

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Definitions:

Trade

The act of buying, selling, or exchanging goods and services between parties within or across national borders.

Coffee

Coffee is a popular beverage made by brewing roasted and ground beans of the Coffea plant, famed for its stimulating effect due to caffeine content.

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Commodities or services sent overseas from one country to another aimed at commerce or trade.

Imports

Goods and services brought into a country from abroad for sale, which can affect the domestic economy in terms of prices, jobs, and trade balances.