Holding Capital Constant at 3 Units, the Marginal Productivity of the Second

question 38

Multiple Choice

Holding capital constant at 3 units, the marginal productivity of the second laborer is

• A) 8.
• B) 12.
• C) 21.
• D) 24.

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Definitions:

GDP Deflator

A measure that reflects the prices of all domestically produced goods and services in an economy.

Percentage Change

A mathematical calculation that describes the degree of change over time, expressing the difference as a percentage of the initial value.

Nominal GDP

The total value of all goods and services produced domestically, calculated using present-day prices, without making corrections for inflation.

GDP Deflator

A technique for ascertaining the price level of all fresh, home-produced, final goods and services in an economy.