A Firm Should Hire More Workers to Increase Its Profits

question 100

Multiple Choice

A firm should hire more workers to increase its profits if

• A)the marginal product of labour is greater than the wage the firm will pay these workers.
• B)the wage rate is less than the marginal revenue product of labour.
• C)there is enough capital and other resources for the workers to use.
• D)the demand for labour is elastic.

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Definitions:

Budget Deficit

A situation where government spending exceeds its revenues within a specific period, leading to borrowing or depletion of reserves.

Budget Surplus

A situation where a government's revenue exceeds its expenditures during a specific period of time.

Tax Liability

The total amount of tax owed to a taxing authority, such as the government, based on taxable income and tax rate.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.