As Firms Use More and More of an Input,________

question 50

Multiple Choice

As firms use more and more of an input,________.

• A)the marginal product of other inputs tends to increase
• B)the marginal product of the input declines
• C)the price of the input may increase
• D)all of the above
• E)none of the above

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Definitions:

Semimonthly

Occurring twice a month or every half month, often used in the context of payroll or billing periods.

FICA Tax

Federal Insurance Contributions Act tax, which funds Social Security and Medicare, jointly paid by employees and employers.

Employer

An entity or individual that hires and pays for the services of an employee or contractor.

Withholding Allowances

Amounts that taxpayers can claim to reduce the federal income tax withheld from their paycheck, based on their expected tax deductions and credits.