(Table: Value of the Marginal Product of Labor and Demand)

question 224

Multiple Choice

(Table: Value of the Marginal Product of Labor and Demand) In the figure Value of the Marginal Product of Labor and Demand, the total product of labor is shown for the hourly production of power cords.If the price of a power cord is $2, the value of the marginal product for the fifth worker is:

• A)$0.
• B)$20.
• C)$40.
• D)$60.

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Definitions:

Keynesian Analysis

An economic approach that emphasizes the role of aggregate demand in influencing economic output and inflation.

Monetary Policy

The process by which a central bank or monetary authority controls the supply of money in an economy, often targeting interest rates to achieve economic objectives.

Consumption Tax

A tax levied on the purchase of goods and services, which can include value-added tax (VAT), sales tax, or excise taxes.

Income Tax

A tax that governments impose on income generated by businesses and individuals within their jurisdiction.