The Chart Below Describes the Short Run Productivity of Workers

question 104

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $\begin{array}{|l|l|}\hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$
If the market price is $5 per page,the first worker's VMP is ____ and the third worker's VMP is ____.

• A) $20;$525
• B) $200;$150
• C) $200;$525
• D) $20;$15

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Definitions:

Functional Finance

An economic theory that prioritizes achieving full employment and stable pricing over balancing budgets.

Potential GDP

The maximum possible level of output an economy can produce without triggering inflation, assuming full employment and optimal use of resources.

Fiscal Policy

Government policies on taxation and spending that are used to influence the economy.

Federal Spending

The expenditure of funds by a government to support its programs and policies.