The Marginal Product of an Input Is

question 78

Multiple Choice

The marginal product of an input is:

• A) total product divided by the amount of the input used to produce this amount of output.
• B) the addition to total output that adds nothing to total revenue.
• C) the addition to total output that adds nothing to profit.
• D) the addition to total output due to the addition of one unit of all other inputs.
• E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.

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Definitions:

U.S. Net Exports

The difference between the value of goods and services the United States exports to other countries and the value of goods and services it imports from other countries.

Aggregate Demand And Supply Model

An economic model that explains price levels and the production of goods and services through the relationship between aggregate demand and supply.

Short-Run Phillips Curve

Describes the inverse relationship between the rate of inflation and the unemployment rate over a short period.

Rational Expectations

The theory that people optimally use all the information they have, including information about government policies, when forecasting the future.