The Marginal Product of a Factor of Production

question 21

Multiple Choice

The marginal product of a factor of production

• A)is equal to the ratio of the amount that factor of production to the amount of output produced.
• B)is equal to the amount of additional output that can be produced with one additional unit of each factor input.
• C)is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs.
• D)is equal to the additional output that can be produced with an additional change in total factor productivity.
• E)always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.

Comprehend the effects of binding minimum wages on labor market outcomes, including employment levels.

Recognize the demographic most affected by minimum wage laws.

Evaluate the precision and effectiveness of minimum-wage laws in targeting low-income workers.

Identify the economic consequences of taxing goods on both demand and supply sides.

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Definitions:

Standard Score Mean

A statistical measure that indicates how many standard deviations an observation or datum is from the mean of a distribution.

Analytic Intelligence

A type of intelligence which includes executive processes such as analyzing, comparing, and evaluating.

Creative Intelligence

A type of intelligence which involves creating, inventing, or designing new ways of solving problems when individuals are faced with an unfamiliar situation.

Practical Intelligence

An assessment developed by Louis and Thelma Thurstone to measure the seven primary mental abilities proposed by Thurstone’s Primary Mental Abilities theory.