Exhibit 7-13 the Total Product of Labor Given the Information

question 24

Multiple Choice

Exhibit 7-13 The Total Product of Labor Given the information in Exhibit 7-13, what is the average product when three units of labor are employed?

• A)more than two-thirds units of output
• B)less than one-third of a unit of output
• C)less than the average product when two units of labor are employed
• D)more than the average product when two units of labor are employed
• E)cannot be determined from the graph of total product

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Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific period, a primary indicator of economic health.

Inventory Investment

Inventory Investment is the change in the level of inventory stocks held by businesses over a certain period, which can affect overall economic output.

Fluctuates

Refers to the variation in the value or level of a variable over time.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.