The Marginal Product of Labour Is Defined as

question 29

Multiple Choice

The marginal product of labour is defined as

• A) The additional output produced by the last ∆L units of labour hired
• B) The amount of output divided by the amount of capital used to produce the output
• C) The amount of output produced multiplied by the last ∆L units of labour hired
• D) The amount of output divided by the number of workers employed

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Definitions:

Transfer Payments

are non-exchange transactions where one party (usually the government) provides economic benefits to another without receiving a good or service in return.

Domestic Output

Refers to the total value of all goods and services produced within a country's borders in a given time period, usually measured as GDP.

Tax Revenue

The revenue collected by governments via taxes.

Personal Income Taxes

These are taxes levied on individuals or households based on their total income from various sources, after allowances for deductions and credits.