Refer to the Table, Which Gives Data for a Firm

question 66

Multiple Choice

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market.If the wage rate is $20, how many workers will the firm choose to employ?

• A)5
• B)4
• C)3

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Definitions:

Adam Smith

An 18th-century economist known for his writings on classical economics, including the concept of the division of labor and the benefits of free markets.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than competitors using the same amount of resources.

Comparative Advantage

An economic theory that suggests a country should produce and export goods in which it has a lower opportunity cost than other countries.