One Reason That Firms Hire Labor at the Point Where

question 60

Multiple Choice

One reason that firms hire labor at the point where w = MPN is

• A)if w < MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.
• B)if w > MPN, the cost (w)of hiring additional workers is less than the benefits (MPN)of hiring them, so they should hire more workers.
• C)if w < MPN, the cost (w)of hiring additional workers equals the benefits (MPN)of hiring them, so they have the right number of workers.
• D)if w > MPN, the cost (w)of hiring additional workers exceeds the benefits (MPN)of hiring them, so they should hire fewer workers.

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Definitions:

Dual Federalism

A political arrangement in which state governments and the federal government each have defined, but separate, powers and responsibilities.

Reform Period

A time frame in which significant changes are made to social, political, or economic institutions and practices.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, aimed at recovering from the Great Depression.