The Increase in Output Obtained by Hiring an Additional Worker

question 160

Multiple Choice

The increase in output obtained by hiring an additional worker is known as:

• A) the average product.
• B) the marginal product.
• C) the total product.
• D) value added.

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Definitions:

LIFO Inventory Method

An accounting method where the last items of inventory purchased are the first ones used or sold, affecting the cost of goods sold and ending inventory values.

FIFO Inventory Method

A method of accounting for inventory that assumes the first items placed in inventory are the first sold.

Balance Sheet

A document that provides a snapshot of a corporation's assets, debts, and shareholder's equity at a given point in time.

Increasing Unit Costs

Refers to the situation where the cost to produce or purchase a single unit of product rises, often due to inflation, increased material costs, or labor costs.