The General Rule Governing the Hiring of Workers Is to

question 44

Multiple Choice

The general rule governing the hiring of workers is to

• A) minimize labour cost.
• B) minimize labour cost per unit.
• C) equate total labour cost to total labour benefit.
• D) maximize marginal product.
• E) equate marginal labour cost to marginal labour benefit.

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Definitions:

Marginal Revenue Product Curve

A graphical representation depicting how the extra revenue generated from hiring an additional unit of a resource varies.

Normal Good

A good for which demand increases as the income of the individual increases, showing a direct relationship between income and demand.

Auto Workers

Employees in the automotive industry who are involved in the manufacturing, designing, and maintenance of vehicles.

Marginal Revenue Product

The supplementary revenue created by the addition of one unit of a production input.