Labor Demand and Labor Supply

question 36

Multiple Choice

Labor Demand and Labor Supply

The following questions refer to the accompanying diagram, which shows an industry's labor demand and labor supply. Labor and capital are the only factors used by the industry. The industry hires L units of labor at a wage of PL.


-Refer to Labor Demand and Labor Supply.What does area B represent?

• A) The industry's total revenue.
• B) The rent earned by the industry's laborers.
• C) The total wages paid to the industry's laborers.
• D) The rent earned by the industry's capital.

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Definitions:

Dividend Income Distributions

Payments made by a corporation to its shareholders, often derived from the company's earnings, representing a share of the profits.

Capital Gains Distributions

Earnings paid to shareholders from the fund's sale of securities, representing a portion of the profits realized by the investment.

Net Asset Value

The value per share of a mutual fund or an exchange-traded fund, calculated by dividing the total value of all the fund's assets minus liabilities by the number of shares outstanding.

Year-End Assets

The total value of all assets owned by an entity at the end of the fiscal year.