Assume That 1 Laborer Produces 6 Units of Output, 2

question 145

Multiple Choice

Assume that 1 laborer produces 6 units of output, 2 laborers produce 14 units, 3 laborers produce 20 units, and 4 laborers produce 24 units. Diminishing returns to labor set in

• A)when the firm hires the first laborer.
• B)never; diminishing returns have not set in, and total output is still increasing.
• C)when the firm hires the second laborer.
• D)when the firm hires the third laborer.
• E)when the firm hires the fourth laborer.

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Definitions:

Mica

A mineral used as an electric insulator.

Northwest Ordinance

An act passed by the Confederation Congress in 1787 that established a government for the Northwest Territory and outlined the process for admitting new states to the Union, prohibiting slavery in the territory.

Old Northwest

A historical term referring to the territory that became the states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and parts of Minnesota; it was an important region for expansion and settlement in early U.S. history.

Slavery

The condition in which individuals are owned by others as property, deprived of personal freedom, and forced to work without pay.