-Refer to the Table Above

question 132

Multiple Choice

-Refer to the table above. Holding employment constant at 1 worker, what is the marginal product of capital when capital is increases from 8 to 9 units?

• A)2
• B)4
• C)1

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Definitions:

Treasury Notes

Intermediate-term U.S. government debt security with a maturity of 1 to 10 years and pays interest every six months.

Maturity at Issue

The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.

Default Risk

The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.

Collateral Trust Bond

A type of bond that is secured by a pledge of collateral, typically securities, placed under the trust of a third party.