- C.In order to answer this question we can make a table to show the marginal product of each worker:
Number of Workers Marginal Product Per Worker00110215320425524621Using this table we can see that the marginal product per worker is maximized at four workers: Choice C.
- D. The producer has a comparative advantage when production of a good consists of lower opportunity costs
than another producer. - B.A decrease in income increases the demand for inferior goods. Demand for inferior goods increases when
individuals’ income’s decrease. - E.Ceteris paribusis the Latin phrase that holds all variables constant when analyzing a particular economic
situation. - D. Elastic demand refers to a situation where quantity demanded is sensitive or responsive to a price change.
Microeconomics Full-Length Practice Test 2Microeconomics Full-Length
Practice Test 2