Let L Represent the Number of Workers Hired by a Firm,and

question 371

Multiple Choice

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L=6,Q=147) and (L=7,Q=174) .The marginal product of the seventh worker is

• A) 25 units of output.
• B) 27 units of output.
• C) 37 units of output.
• D) 174 units of output.

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Definitions:

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Ability-to-pay Principle

A tax principle that suggests taxes should be levied according to an individual or entity's capacity to pay, reflecting their income or wealth.

Transfer Payments

Payments made by governments to individuals or other entities without the expectation of a direct return or the provision of goods or services, such as social security benefits or subsidies.

Income Distribution

The way in which a nation's total GDP is distributed amongst its population.