All of the Following Are True at the Equilibrium Wage

question 119

Multiple Choice

All of the following are true at the equilibrium wage in a competitive market except

• A) MRP equals the wage rate.
• B) The ratio of the MPP to the factor's price is the same for all factors.
• C) The market demand curve for labor intersects the market supply curve of labor.
• D) MRP is less than MPP.

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period.

Health Savings Accounts

Tax-advantaged savings accounts available to individuals in the U.S. enrolled in high-deductible health plans, used to pay for medical expenses.

High-deductible

A term often used in insurance policies that require the insured to pay a significant amount out of pocket before the insurance coverage begins to pay.

Tax-free

Financial gains or earnings that are not subject to taxation by government authorities.