If the real wage falls the: a. marginal cost of labor falls. b. firm will hire additional labor. c. marginal benefit of the worker decreases. d. all of the above. e. a and b only.

The correct answer is "D. All of the above".

Explanation:  

Marginal cost of labor: It is the additional cost of hiring an additional worker. Normally the workers' salary is the same, so the marginal cost of labor will always be the same.

The correct answer is "D" because if the real wage falls, the cost of hiring a worker for the company is lower, therefore companies will hire additional workers.

And if workers' wages decrease, their marginal benefit also decreases because they will have less income.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.