If an Additional Unit of Labor Costs $20 and Has

question 137

Multiple Choice

If an additional unit of labor costs $20 and has a MPP of 15 units of output,the marginal cost is

• A)$0.75.
• B)$1.33.
• C)$30.00.
• D)$300.00.

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, during a specific time period.

Government Purchases

Expenditures by government entities on goods and services that are directly consumed or invested to achieve public objectives, contributing to aggregate demand.

Crowding-out

A phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates.

Aggregate Demand

The complete market appetite for all goods and services in an economy, assessed at a defined price level during a particular duration.