Refer to Table 7

question 3

Multiple Choice

Refer to Table 7.1.Diminishing returns set in with the ______ worker.

• A) third
• B) fifth
• C) fourth
• D) sixth

---

Definitions:

Fiscal Policy

Government strategies to influence an economy’s direction through spending and taxation decisions.

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by the central bank to control inflation, unemployment, and the exchange rate.

Budget Deficits

A situation in which a government's expenditures exceed its revenues, resulting in the need to borrow money to cover the difference.

Interest Rates

The percentage charged on borrowed money or paid on savings accounts, essentially the cost of borrowing or the reward for saving.