The Demand and Supply Curves Shown Below Apply to a Competitive

question 55

Multiple Choice

The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. FIGURE 13-2
-Refer to Figure 13-2.This factor market is in equilibrium at point B.In equilibrium,the 20th unit of the factor is being paid transfer earnings of ________ and economic rent of ________.

• A)$120; -$2
• B)$16; $2
• C)$320; $80
• D)$120; $40
• E)$6; $2

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Definitions:

Correlation Coefficient

A statistical measure that describes the extent to which two variables change together.

Inverse Relationship

An inverse relationship refers to a situation where one variable increases while the other variable decreases, showing a negative correlation between the two.

Job Evaluation Points

A numerical value assigned to various aspects of a job, such as skills, effort, and responsibility, to determine its relative worth.

Point Method

A job evaluation method that quantifies job elements to assign points, which are used to determine an appropriate compensation level.