The Amount by Which Output Would Increase If We Added

question 25

Multiple Choice

The amount by which output would increase if we added one more unit of capital to production, holding all other inputs fixed is called the

• A) average product of capital
• B) marginal product of labor
• C) marginal product of capital

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Definitions:

Job Experience

Refers to the skills and knowledge a person gains while working in a specific job or occupation over a period of time.

Average Wages

A measure of the average income earned by workers, calculated by dividing the total wage bill by the number of employees.

Compensating Differentials

Differences in wages that arise to offset the non-monetary characteristics of different jobs, such as risk or undesirable location.

Average Wages

The mean income of workers in a particular group, sector, or economy, calculated by dividing the total wages by the number of wage earners.