Your Boss Wants to Know If You Should Lay Off

question 42

Multiple Choice

Your boss wants to know if you should lay off any workers.You answer that you should lay off workers if the

• A)marginal revenue product of labor is greater than the nominal wage rate.
• B)marginal product of labor is greater than or equal to the real wage rate.
• C)marginal revenue product of labor is equal to the nominal wage rate.
• D)marginal product of labor is less than the real wage rate.

Recognize the importance of making choices due to scarce resources and its impact on opportunity cost.

Understand the concept and significance of physical capital in production processes.

Explain the universal problem of scarcity across different societies.

Apply the concept of opportunity cost to everyday financial and non-financial decisions.

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Definitions:

P-Value

The likelihood of obtaining results from a test that are at least as significant as those observed, on the premise that the null hypothesis is valid.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

P-Value

The probability of observing test results at least as extreme as the results actually observed, assuming that the null hypothesis is true.

West Nile Virus

A virus transmitted to humans and animals through the bite of an infected mosquito, known for causing West Nile fever.