The General Rule of Hiring Workers Is to Hire

question 25

Multiple Choice

The general rule of hiring workers is to hire:

• A) workers if their marginal product of labor is less than or equal to the wage.
• B) workers if they contribute more to the firms' revenues than the firm's costs.
• C) educated workers before noneducated workers.
• D) the most productive workers, regardless of the wage.

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Definitions:

Common Stock

Equity securities representing ownership interests in a corporation, providing voting rights and a share in the company's profits.

Market Value

The current price at which an asset or service can be bought or sold in a public market.

Initial Owners

The original investors or founders who hold ownership stakes in a company at its inception.

Corporation

A legal entity distinct from its owners, providing limited liability protection, and able to own assets, incur debt, and sell ownership shares.