When a Profit-Maximising Firm Makes a Decision to Employ a Worker

question 196

Multiple Choice

When a profit-maximising firm makes a decision to employ a worker, that decision is based on:

• A)the familial relationship between the employer and the employee
• B)how much output the worker can produce
• C)the individual contribution that the worker makes to the profit of the firm
• D)the total output produced by the firm

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Definitions:

Credits

Entries in accounting that increase liabilities or equity, or decrease assets, representing the opposite of debits.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Accounts

Records within an accounting system that are used to store and summarize transactions related to specific assets, liabilities, equity, revenue, and expenses.