Economics Multiple Choice Question – 26 July 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A firm employs 60 workers, paying each worker £520 a week.

To attract an extra worker, the firm raises the wage of each worker to £540 a week.

What is the marginal cost of employing the 61st worker?

Select ONE answer:

  1. £20
  2. £540
  3. £1,740
  4. £32,940

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

  1. This is the rise in pay each of the original workers receives.
  2. This is the new wage.
  3. Correct: the rise in total wages is £32,940 – £31,200 or £540+(60 * £20)
  4. This is the new total wage bill

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: