In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers? A

Economics Dec 08, 2020

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

A. wage levels

B. the macroeconomy

C. the firm's income

D. household income

Expert Solution

Option B (the macroeconomy) is correct.

This option is correct because the decision of an individual firm to hire workers depends on the behavior of macroeconomic conditions. There are various macroeconomic factors that influence the decision of the firms to hire workers. Inflation, level of price for the products, growth rate in the economy, and many others influence the decision of the firms.

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