If the Wage Rate Exceeds the Value of Marginal Product

question 15

Multiple Choice

If the wage rate exceeds the value of marginal product, a firm

• A) can increase its profit by firing some workers.
• B) can increase its profit by increasing the wage rate and not changing its employment.
• C) can increase its profit by hiring more workers.
• D) can increase its profit by increasing the wage rate and increasing its employment.
• E) is maximising its profit.

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Definitions:

New Job

Beginning employment in a new position or organization, often bringing changes in routine, responsibilities, and social interactions.

Multiple Intelligences

A theory proposing that people possess different kinds of intelligences, not just traditional IQ.

Howard Gardner

An American cognitive psychologist known for his theory of multiple intelligences.

Traditional IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities based on a fixed set of criteria.