Exhibit 7-5 Workers and Output Data -In Exhibit 7-5, the Marginal Product of the Second Worker

question 4

Multiple Choice

Exhibit 7-5 Workers and output data $$\begin{array} { | c | c | } \hline \text { Laborers } & \begin{array} { c } \text { Total } \\\text { Product }\end{array} \\\hline 0 & 0 \\1 & 8 \\2 & 20 \\3 & 25 \\4 & 28 \\5 & 29 \\\hline\end{array}$$
-In Exhibit 7-5, the marginal product of the second worker is:

• A) 0.
• B) 8.
• C) 10.
• D) 12.
• E) 20.

---

Definitions:

May Wages

The total payroll expenses incurred for labor during the month of May.

FICA-Social Security Tax

A federal tax in the United States collected from both employees and employers to fund the Social Security program.

FICA-Medicare Tax

The portion of the Federal Insurance Contributions Act tax that funds Medicare, deducted from employees' wages and also paid by employers.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.