Consider the Following Table -If the Business Is Hiring Workers Under Perfectly Competitive Conditions

question 29

Multiple Choice

Consider the following table:

$\begin{array} { | l | l | l | l | l | l | l | l | } \hline \text { Employment } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Total Product } & 0 & 12 & 22 & 30 & 36 & 40 & 42 \\\hline \text { Product Price } ( \$ ) & 3 & 3 & 3 & 3 & 3 & 3 & 3 \\\hline\end{array}$
-If the business is hiring workers under perfectly competitive conditions at a wage rate of $10,it will choose to employ:

• A)1 worker
• B)2 workers
• C)3 workers
• D)5 workers
• E)6 workers

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Definitions:

Short-Run Aggregate Supply Curve

A curve depicting the relationship between the total supply of goods and services produced by a country and the price level for that output in the short term, taking some input prices as fixed.

Treasury Securities

Debt instruments issued by a government to finance its spending, offering a safe investment option with a guaranteed rate of return.

Fed's Monetary Policy

The strategies employed by the Federal Reserve System to regulate the amount of money in circulation and influence interest rates to achieve economic objectives like controlling inflation or stimulating growth.

Federal Funds Rate

The interest rate at which banks lend reserve balances to other banks overnight, which is determined by the Federal Reserve in the U.S.