How Is the Marginal Product of Labour Defined

question 99

Multiple Choice

How is the marginal product of labour defined?

• A)As the change in total revenue that results when an additional unit of a labour is hired.
• B)As the additional labour required to produce one more unit of output.
• C)As the additional labour cost of producing one more unit of output.
• D)As the change in output that a firm produces as a result of hiring one more worker.

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Definitions:

Disposable Income

The capital households have left for spending and saving after paying income taxes.

Disposable Income

The financial capacity of households to spend and save, net of income taxes.

Savings

The part of earnings not used for purchasing goods or services, typically saved for investing or future needs.

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.