-Refer to the Above Table

question 382

Multiple Choice

-Refer to the above table. At what quantity of labor does it become obvious that the law of diminishing marginal product has set in?

• A) worker number 3
• B) worker number 4
• C) worker number 21
• D) worker number 5

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Definitions:

Allowance or Exemption

A reduction in the amount of income that is subject to tax, or a legal deduction from reported income to reduce taxable income.

Nontaxable

Income or transactions that are not subject to taxation by government authorities.

FICA-OASDI

The part of the U.S. payroll tax that funds the Social Security program, officially called Old Age, Survivors, and Disability Insurance.

FICA-Medicare

Part of the U.S. payroll tax that funds Medicare, providing health insurance to individuals aged 65 and over, and to certain younger people with disabilities.