-The Table Above Gives Information About the Labour Market in Lantis

question 137

Multiple Choice

-The table above gives information about the labour market in Lantis, a community in which the labour market is perfectly competitive. If the value of marginal product of labour increased by $10 an hour at all quantities of labour, the equilibrium wage rate _______ an hour and the quantity of labour employed _______.

• A) stays at $15; decreases to 300 hours
• B) rises to $10; increases to 600
• C) rises to $20; increases to 500 hours
• D) None of the above answers is correct.

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Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another, typically measured by the gross domestic product (GDP).

Import-substitution Strategies

Economic policies and practices aimed at replacing foreign imports with domestic production.

Economists

Professionals specialized in the study of economics, focusing on the production, distribution, and consumption of goods and services.

Economic Development

The process of improving economic well-being and quality of life through economic growth, creation of jobs, and the implementation of social and technological advancements.