Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are
hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. The marginal product of the second worker is:
A. 24.
B. 8.
C. 5.
D. 1.
Answer: B
You might also like to view...
Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
Assume that a British investor buys a one-year U.S. Treasury bill that pays 6 percent annual interest. Given a yield of 4 percent on a comparable British Treasury bill, the U.S. dollar must depreciate 2 percent against the British pound during the year for interest rate parity to hold
a. True b. False Indicate whether the statement is true or false
Adam Smith believed that the rich man enjoys his riches primarily because he gets great pleasure from
a. the goods and services he can buy b. his donations to charity c. leaving an inheritance to his heirs d. the attention he gets from others e. his easy life of leisure
If the Gini coefficient in the economy decreases from .40 to .32, this indicates
a. greater income equality b. greater income inequality c. the economy is poorer d. the economy is richer e. none of the above can be determined from this information