Competitive Firms Hire an Additional Worker Only If the Additional

question 114

Multiple Choice

Competitive firms hire an additional worker only if the additional profit created by the newly hired worker exceeds:

• A)the revenue collected
• B)the wage she is paid
• C)her marginal product
• D)the value of her marginal product

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by gross domestic product (GDP) growth.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Balance Of Trade

The difference between a country's exports and imports of goods and services over a certain period.

Federal Budget

The government's estimate of revenue and expenditure for a fiscal year, outlining financial priorities and resource allocations.