The Value of the Marginal Product of Labor Is Calculated

question 534

Multiple Choice

The value of the marginal product of labor is calculated by multiplying the

• A)price of output by the quantity of labor.
• B)price of output by the marginal product of labor.
• C)wage by the quantity of labor.
• D)wage by the marginal product of labor.

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Definitions:

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Take Home

The net amount of income that an individual actually receives after all deductions, such as taxes and social security contributions.

Taxable Bond Portfolio

A collection of bonds whose interest payments are subject to federal and possibly state income taxes.

Roth Retirement Plan

A type of retirement savings plan allowing taxable withdrawals to be made tax-free, provided certain conditions are met.