The Following Data Show the Total Output for a Firm

question 46

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The average product of labour is highest when the firm hires

• A)1 unit of labour.
• B)2 units of labour.
• C)3 units of labour.
• D)4 units of labour.
• E)5 units of labour.

Identify factors affecting the cost of capital and the decision to use debt or equity financing.

Understand the economic policies that contributed to the recovery from the Great Depression.

Identify and describe the role of automatic stabilizers in the economy.

Comprehend the perspectives of classical and Keynesian economists on the economy.

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Definitions:

Fallacy of Relevance

The premise is logically irrelevant, or unrelated, to the conclusion.

Straw Man Fallacy

An opponent’s argument is distorted or misrepresented in order to make it easier to refute.

Equivocation

A key term in an argument changes meaning during the course of the argument.

Snob Appeal

An advertising strategy that attempts to make the audience feel that a product or service will elevate their status or prestige.