A Farm Can Produce 1,000 Bushels of Wheat Per Year

question 303

Multiple Choice

A farm can produce 1,000 bushels of wheat per year with two workers or 1,300 bushels of wheat per year with four workers. The marginal product of the fourth worker is _____ bushels.

• A) 100
• B) 300
• C) 1,300
• D) 150

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Definitions:

Interest-rate Ceilings

Regulatory limits placed on the maximum interest rates that can be charged on loans, intended to protect borrowers.

Bank Profits

The earnings generated by banks, derived from the difference between the interest paid on deposits and the interest received from loans.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at commercial banks and savings institutions.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring the stability of the financial system.