The Average Product of Labor Is Defined As

question 40

Multiple Choice

The average product of labor is defined as:

• A) the additional output produced by the last ∆L units of labor hired.
• B) the amount of output divided by the amount of capital used to produce the output.
• C) the amount of output produced multiplied by the last ∆L units of labor hired.
• D) the amount of output divided by the number of workers employed.

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Definitions:

Aggregate Expenditure Line

A graphical representation that shows the total spendings in an economy at various levels of national income, illustrating the relationship between overall spending and the output level at which the economy can be in equilibrium.

Income

Refers to the amount of money received over a specific period of time by an individual or group from various sources like wages, investments, or business operations.

Aggregate Expenditure

the total amount of spending on goods and services in an economy during a specific period, including consumption, investment, government spending, and net exports.

Net Exports

The value of a country's total exports minus its total imports, representing its trade balance.