The Marginal Physical Product of Labor Is

question 23

Multiple Choice

The marginal physical product of labor is

• A) the output of the firm divided by the number of workers.
• B) the change in total revenues resulting from the addition of one more worker, while increasing one other factor of production.
• C) the change in output resulting from the addition of one more worker, holding other factors of production constant.
• D) the change in output resulting from the addition of one more worker, adjusting the level of the capital stock accordingly.

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Definitions:

Unemployment

The condition where people who have the ability to work and are actively looking for jobs cannot secure employment.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances in bank accounts.

Economic Pie

A metaphor for the total amount of wealth or resources available in an economy that can be distributed among its participants.

Standard of Living

The extent of financial status, comfortability, worldly possessions, and essentials provided to a certain community class or area.