Table 7.3 -Refer to Table 7.3.The Table Above Refers to the Relationship

question 64

Multiple Choice

Table 7.3
-Refer to Table 7.3.The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes.The capital used to produce the boxes is fixed.The average product of labour will equal 60 boxes when Manny hires

• A)the second worker.
• B)the third worker.
• C)the fourth worker.
• D)the fifth worker.

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Definitions:

Wage Rate

The fixed amount of compensation or payment made to an employee by an employer in return for work performed, typically expressed on an hourly, daily, or piecework basis.

Labor

The exertion of human energy, both bodily and cognitive, employed in generating goods and services.

Leisure

Free time when one is not working or occupied, which can be used for rest, entertainment, or activities one enjoys.

Nonlabor Income

Income received that is not related to wages or salaries, such as income from investments, pensions, or social security.