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Star Inc., an engineering firm, has come up with a new technical test to assess the knowledge of interviewees. To assess the validity of the test, it requests its present employees to take the test and match it with their performance in the organization. Which of the following types of validation has Star Inc. used to test the validity of its new technical test?
Marginal Product
The additional product created when one unit of a certain input is added, with all other inputs held steady.
Marginal Revenue Product
The increased earnings resulting from the utilization of one additional unit of a production resource.
Labor Supply
The total hours that workers wish to work at a given real wage rate, reflecting how individuals divide their time between labor and leisure.
Capital
Financial assets or the monetary value of physical assets such as buildings or machinery used by a business to produce goods or services.
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