If a Firm Offers Specific Training to Its Workers,when the Training

question 25

Multiple Choice

If a firm offers specific training to its workers,when the training is over,

• A) workers will most likely be paid a wage that is equal to their marginal product.
• B) workers will most likely be paid a wage that is greater than their marginal product, to compensate for the training.
• C) workers will most likely be paid a wage that is less than their marginal product.
• D) workers will most likely be paid a wage that is less than their wage before training.

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Definitions:

Discount Rates

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Present Value

Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in the assessment of investment attractiveness.

Initial Investment

The initial amount of money invested in a project, asset, or business at the start.

Annual Returns

Annual returns are the percentage change in an investment's value over a year, including interest, dividends, and capital gains.