Exhibit 11-11 Labor Wage and Cost Data -In Exhibit 11-11, the Total Wage Cost of Hiring 12

question 122

Multiple Choice

Exhibit 11-11 Labor wage and cost data $$\begin{array} { | c | c | c | c | } \hline \text { Labor } & \text { Wage } & \text { TWC } & \text { MFC } \\\hline 10 & \$ & \$ 50.00 & \$ \\11 & 5.80 & & \\12 & & & 17.80 \\13 & & 102.70 & \\14 & & 126.00 & \\15 & & & 46.50 \\\hline\end{array}$$
-In Exhibit 11-11, the total wage cost of hiring 12 employees is equal to:

• A) $17.80.
• B) $63.80.
• C) $102.70.
• D) $81.60.
• E) $6.80.

---

Definitions:

Marginal Propensity

The tendency of an individual or population to consume or save an extra unit of income.

Lump-Sum Taxes

Taxes that are a fixed amount, not varying with the income or wealth of the taxpayer, and are paid at one time instead of in installments.

Budget Deficit

A situation where a government's expenditures exceed its revenues during a specified period of time, leading to borrowing or debt accumulation.

Discretionary Fiscal Policy

Government policy involving the use of government spending and taxation levels to influence the economy, based on current conditions.