The Following Table Shows Output Per Hour Produced by the Different

question 104

Multiple Choice

The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
-Refer to Table 14.1. If both the wage rate and the price of the good falls to $2, how many workers would the firm hire?

• A)1
• B)2
• C)3
• D)4

---

Definitions:

Economic Fluctuations

Variations in the level of economic activity in a country over a period of time, characterized by periods of boom and recession.

Fiscal Policy

The use of government spending and taxation levels to influence the economy, aiming at managing economic fluctuations, controlling inflation, and stimulating economic growth.

Tax Cut

A reduction in the amount of taxes imposed by a government, often aimed at stimulating economic growth or achieving political goals.

Great Depression

A severe worldwide economic depression that took place during the 1930s, beginning in the United States.