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Evaluate each of the following. If necessary, round each answer in decimal form to 3 significant digits. If the operation is not defined, so state.
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Real Wages
Wages adjusted for inflation, reflecting the actual purchasing power of income earned from work.
Output per Worker
A measure of productivity calculated by dividing total output of goods or services by the number of workers involved in the production.
Productivity of Labor
The measurement of the output produced by employees per unit of input, such as per hour of work.
Diminishing Returns
A principle which states that as more units of a variable input (like labor) are added to fixed inputs (like capital), the additional output from each new unit of input will eventually decrease.
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