Assume That Average Product for Six Workers Is Fifteen

question 83

Multiple Choice

Assume that average product for six workers is fifteen. If the marginal product of the seventh worker is eighteen,

• A) marginal product is rising.
• B) marginal product is falling.
• C) average product is rising.
• D) average product is falling.

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Definitions:

Workers' Compensation

Insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Gross Payroll

Gross payroll represents the total amount of money a business owes to its employees before any deductions, such as taxes and other withholdings, are made.

Injury

Physical harm or damage to a person's body, often resulting from accidents or violence.

FICA-OASDI

The Social Security portion of the Federal Insurance Contributions Act tax, used to fund the Social Security program in the United States.