Red Stone Creamery Currently Hires 5 Workers

question 325

Multiple Choice

Red Stone Creamery currently hires 5 workers.When it added a 6th worker, its output actually fell.Which of the following statements is true?

• A)The marginal product of the sixth worker must be negative.
• B)The average product of the sixth worker is negative.
• C)The sixth worker is not as skilled as the fifth worker.
• D)The total product becomes negative.

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Definitions:

Rate Of Economic Growth

The increase in the market value of the goods and services produced by an economy over time, usually measured as the percentage increase in real gross domestic product (GDP).

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value in employees.

Tariffs

Tariffs are taxes imposed by a government on imported goods and services to protect domestic industries or to generate revenue.

Real GDP

Real GDP (Gross Domestic Product) measures the value of economic output adjusted for price changes, providing a more accurate reflection of an economy's size and how it's growing over time.