The Marginal Expenditure Curve for Labor Is Based on the Assumption

question 49

Multiple Choice

The marginal expenditure curve for labor is based on the assumption that:

• A) the most productive workers are hired first.
• B) the wage rate is independent of the quantity of labor employed.
• C) the market supply curve for labor is infinitely elastic.
• D) all workers are paid the same wage rate.
• E) none of the above

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Definitions:

Interest Rate

A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.

Term

In finance, it refers to the period of time until a loan matures; in a broader sense, it can describe any specific duration or the definition of a concept or agreement.

Receivable

Money owed to a company by its customers or clients for goods or services delivered or used but not yet paid for.