If the Real Wage Rate Is Such That the Quantity

question 271

Multiple Choice

If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded,

• A) real GDP equals potential GDP.
• B) a full-employment equilibrium occurs.
• C) the opportunity cost effect of not working equals the income effect.
• D) Both answers A and B are correct.

---

Definitions:

Goods-Producing Sector

An economic segment that encompasses industries involved in the fabrication, conversion, and assembly of goods.

Percent Jobs

Likely refers to the percentage of jobs or tasks completed successfully or within a specified standard or time frame.

Labour Hour

A unit of measure representing one hour of work performed by an employee, used for planning, costing, and efficiency assessments.

Assembly Line

A manufacturing process in which parts are added in sequence until the final assembly is produced.