Suppose a 1-Unit Increase in Labour,from 2 to 3 Workers,increases

question 120

Multiple Choice

Suppose a 1-unit increase in labour,from 2 to 3 workers,increases output at a woollen mill from 10 to 15 sweaters.The marginal product from the increase in the quantity of labour is

• A)1 sweater.
• B)3 sweaters.
• C)10 sweaters.
• D)5 sweaters.
• E)15 sweaters.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole, indicating its sensitivity to market movements.

Market Index

A hypothetical portfolio of investment holdings that represents a segment of the financial market, used as a benchmark to measure an investment's performance.

Standard Deviation

A statistical measurement of variation or dispersion around an average, indicating how much a set of numbers is spread out.