If You Owned a Wheat Farm and Employed 10 Workers

question 57

Multiple Choice

If you owned a wheat farm and employed 10 workers then decided to hire another worker, the additional worker's output is considered:

• A)total output.
• B)marginal product.
• C)average product.
• D)production function.
• E)none of the above.

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Definitions:

Leverage Ratio

A financial ratio indicating the degree to which a company or individual is financing its operations through debt, compared to its equity.

LIFO

"Last In, First Out," an inventory management method where the most recently produced or acquired items are the first to be used or sold.

FIFO

An accounting and inventory method where the first items produced or acquired are the first ones to be sold or used, standing for "First-In, First-Out".

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.