Exhibit 7-1 Production of Pizza Data

question 48

Multiple Choice

Exhibit 7-1 Production of pizza data

Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

• A) 4.
• B) 10.
• C) 14.
• D) 6.

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Definitions:

FICA-OASDI

The Social Security portion of the Federal Insurance Contributions Act tax, used to fund the Social Security program in the United States.

Union Dues

Fees paid by workers to the union that represents them, used for collective bargaining and other services.

State Income Tax

A tax imposed by individual states on the income of residents and sometimes non-residents who earn income within the state.

FICA

Federal Insurance Contributions Act; a U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.