A Firm Should Hire an Additional Worker as Long as the Wage

question 78

Multiple Choice

A firm should hire an additional worker as long as the wage rate is

• A)Greater than the MRP.
• B)Greater than the MPP.
• C)Less than or equal to the MRP.
• D)Less than the MPP.

---

Definitions:

Money Supply

The aggregate of cash, coins, and deposits in checking and savings accounts, representing the financial assets available within an economy at a certain point in time.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.

Unemployment

The condition of someone being able to work and actively seeking work but unable to find employment.

Natural Rate

A concept referring to the level of unemployment at which inflation is not accelerated, suggesting an equilibrium between demand for labor and supply.