If a Firm Hires 12 Workers at $9 Per Hour

question 133

Multiple Choice

If a firm hires 12 workers at $9 per hour each and the 13^th worker will be hired only if the wage rate falls to $8 per hour, the marginal wage rate must be

• A) -$8.
• B) $8.
• C) -$4.
• D) $4.

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Definitions:

Compounded Annually

the process of adding interest to the principal sum of a loan or deposit once every year.

RRSP

A Retirement Savings Plan officially recognized for both working individuals and self-employed people in Canada, designed for saving and investing towards retirement.

Annual Contributions

Regular amounts added to an investment, savings account, or retirement fund once every year.

Compounded Semi-Annually

Interest that is compounded semi-annually is applied to the principal amount twice a year, leading to an increase in the overall amount of interest earned compared to simple interest.