If a Firm Could Hire All the Workers It Wanted

question 14

Multiple Choice

If a firm could hire all the workers it wanted at a zero wage (i.e. ,the workers are volunteers) ,the firm should hire

• A)Enough workers to produce the output where diminishing returns begin.
• B)Enough workers to produce the output where worker productivity is the highest.
• C)Enough workers to produce where the MPP equals zero.
• D)All the workers that can fit into the factory.

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Definitions:

Price Indexes

Statistical measures that track changes in the price level of a basket of goods and services over a period of time.

Nominal GDP

The total market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.

Real GDP

The measure of a nation's total economic output adjusted for price changes and inflation, representing the actual value of goods and services.

Price Indexes

Statistical measures reflecting the average change over time in the prices paid by consumers or received by producers for goods and services.