-Based on the Production Data for Pat's Pizza Parlor in the Above

question 131

Multiple Choice

-Based on the production data for Pat's Pizza Parlor in the above table, the marginal product of the 4th worker is ________ pizzas.

• A) 5
• B) 8
• C) 10
• D) 45

---

Definitions:

Cost-Push Inflation

Cost-push inflation is caused by an increase in the prices of production inputs like labour and raw materials, leading to decreased supply and increased cost of finished goods.

Potential Output

This refers to the maximum output an economy can produce without leading to inflation, assuming all resources are fully utilized.

Actual Price Level

The Actual Price Level refers to the current general level of prices for goods and services in the economy at a specific point in time.

Actual Price Level

The current average of all prices of goods and services in an economy, indicating the cost of living and the economic environment.