Table 7-4 Shows the Quantities of Labor and Capital Required

question 49

Multiple Choice

Table 7-4 shows the quantities of labor and capital required to produce various levels of output.
Table 7-4 $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Amount of } \\\text { Capital }\end{array} & \begin{array} { c } \text { Amount of } \\\text { Labor }\end{array} & \text { Total Product } \\\hline 5 & 1 & 10 \\\hline 5 & 2 & 24 \\\hline 5 & 3 & 42 \\\hline 5 & 4 & 56 \\\hline 5 & 5 & 66 \\\hline 5 & 6 & 74 \\\hline 5 & 7 & 80 \\\hline\end{array}$$
-Refer to Table 7-4.What is the marginal product of the fourth worker?

• A)10
• B)14
• C)42
• D)56

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Definitions:

Money Supply

The sum total of available financial assets in an economy at a particular time slot.

Price Level

A general measure of the cost of goods and services within an economy or specific market at a given time.

Real GDP

The total value of all goods and services produced within a country in a year, adjusted for inflation, reflecting the real purchasing power.

Aggregate Demand

The cumulative requests for goods and services in an economy, aimed at a fixed price level within a set timeline.