Which of the Following Correctly Defines the Marginal Product of Labor

question 33

Multiple Choice

Which of the following correctly defines the marginal product of labor?

• A) It is the additional output produced by an additional unit of labor, all other factors held constant.
• B) It is the additional output produced by a proportionate increase in capital and labor, the demand for the product held constant.
• C) It is the additional labor required to produce one additional unit of output, other inputs held constant.
• D) It is calculated as the total output divided by the total units of labor employed in production.
• E) It is the addition to total cost from employing an additional unit of labor.

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Definitions:

Federal Reserve

is the central banking system of the United States, responsible for managing the nation's monetary policy and overseeing its banking institutions.

Automatic Stabilizers

Programs such as unemployment insurance benefits and taxes that are already on the books to help alleviate recessions and hold down the rate of inflation.

Government Surplus

The situation where a government's revenue exceeds its expenditures during a given timeframe, indicating a positive fiscal balance.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.