When a Firm Hires a Worker for One Hour, the Marginal

question 198

Multiple Choice

When a firm hires a worker for one hour, the marginal benefit to that firm equals the

• A) dollar value of the goods produced by that worker in one hour.
• B) hourly wage of that worker.
• C) number of items the worker produces in that hour.
• D) price of each item that the worker produces in that hour.

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Definitions:

Common Stock

An equity security that denotes ownership within a corporation and grants the owner voting rights on company issues as well as eligibility to receive dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Treasury Stock

Shares of a company's own stock that it has reacquired but has not retired, which can be resold or used for other corporate purposes.

Paid-in Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, over and above the par value of the shares.