A Firm Can Hire 8 Workers at a Wage Rate

question 102

Multiple Choice

A firm can hire 8 workers at a wage rate of $7 per hour but must pay $8 per hour to all of its employees to attract a ninth worker. The marginal wage cost of the ninth worker is

• A)$8.
• B)$9.
• C)$16.
• D)$72.

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Definitions:

Corporate Bonds

Debt securities issued by corporations to raise capital, with the expectation that they will pay back the principal along with interest.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks.

Income Stocks

Shares in companies that regularly distribute a high portion of their earnings to shareholders in the form of dividends.

Traditional IRA

A savings plan in which the income generated by the account is tax-deferred until it is withdrawn from that account.