Lynn owns Dust Bunnies, a cleaning company. In one week, she is able to clean 9 houses. If she hires an employee, together they are able to clean 15 houses per week
If Lynn charges $100 to clean a house, and she pays her employee $400 a week, should she hire this employee? A) Yes, because the value of marginal product of the worker is less than the wage.
B) Yes, because the value of marginal product of the worker is greater than the wage.
C) No, because the value of marginal product of the worker is greater than the wage.
D) No, because the value of marginal product of the worker is less than the wage.
B
You might also like to view...
If the Fed wishes to increase nominal interest rates, it must engage in an open market ________ of bonds to ________ the money supply.
A. sale; increase B. sale; keep constant C. sale; decrease D. purchase; increase
Changing the price of a good will usually result in a negative externality
Indicate whether the statement is true or false
If the United States economy were operating on its production possibilities frontier, it would have the best chance of quickly and temporarily reaching point F if
A. we were at war.
B. we were in a depression.
C. we were in a period of inflation.
D. we invested more in plant and equipment.
Answer the following statement(s) true (T) or false (F)
1.The natural rate hypothesis states that the economy will self-correct to the natural rate of unemployment. 2.An unanticipated rise in the inflation rate makes real wages rise. 3.Over time, an increase in aggregate demand will shift the short-run Phillips curve to the right. 4.Adaptive expectations are an individual’s belief that the recent information on inflation and unemployment are poor indicators of the future. 5.A decrease in energy prices would be considered a positive supply shock.