The above table shows the marginal benefit from submarines for the only two citizens of a country. Suppose submarines cost 175 a piece. Politician A proposes 2 submarines while politician B proposes 4.
Assuming that both Bobby and Katie pay one half of the resulting taxes and neither is rationally ignorant, which politician will win the election? A) A because she offers voters a lower tax bill.
B) A because she offers voters a greater net benefit.
C) B because she offers voters a greater total benefit.
D) B because she offers voters more submarines.
Question 2
Cindy's Sweaters' production function is shown in the above table. What is the marginal product of labor when the 4th worker is hired?
A) 4 sweaters per day
B) 2 sweaters per day
C) 20 sweaters per day
D) 5 sweaters per day
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