Exhibit 6-1 Production of pizza data
Workers
Pizzas
0
0
1
4
2
10
3
15
4
18
5
19
Exhibit 6-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the labor input begins to fall with the employment of the
A. first worker.
B. second worker.
C. third worker.
D. fourth worker.
Answer: C
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The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?
What will be an ideal response?
Suppose the market-clearing wage for pizza delivery workers is $7.00 per hour, but a $10.00 per hour minimum wage is enacted. Other things constant, the higher minimum wage tends to
A) increase the supply of pizza delivery workers. B) decrease the quantity demanded of pizza delivery workers. C) create a shortage of pizza delivery workers. D) accomplish all of the above. E) accomplish none of the above.
Which of the following statements regarding the agricultural industry is correct?
A) Economies of scale and consolidation have significantly reduced the degree of competition in the industry. B) Corporate farms now control more than 50 percent of the market for each of the major crops. C) The largest 5 percent of growers of any particular product are characterized by a small number of interdependent producers. D) Although farming has become increasingly concentrated over the last 70 years, it is still a highly competitive industry.
Which country was among the lowest ranking by the World Bank for effective protection of property rights and rule-based governance?
a. South Korea b. Venezuela c. Central African Republic d. Iran