Exhibit 7.1 -Refer to Exhibit 7.1 Which Shows the Total Product and the Total

question 179

Multiple Choice

Exhibit 7.1

-Refer to Exhibit 7.1 which shows the total product and marginal product produced by a firm.After seven workers,_____

• A)marginal product is rising and total product increases by increasing amounts.
• B)marginal product is falling but still positive, and total product increases by decreasing amounts.
• C)marginal product equals zero and total product is at a maximum.
• D)marginal product is negative and total product is falling.
• E)marginal product is negative and total product is rising.

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Definitions:

Test Statistic

A statistical measure computed to assess the evidence against a null hypothesis in a testing framework.

Null Hypothesis

A statement used in statistical testing that assumes no effect or no difference and is tested against an alternative hypothesis.

Level Of Significance

The probability of making a Type I error when the null hypothesis is true as an equality.

Population Variances

A measure of the spread between numbers in a data set, showing how much each number differs from the mean of the population.