The Figure Above Shows a Labour Market with an Income

question 16

Multiple Choice

The figure above shows a labour market with an income tax.
-According to the figure above, if there is no income tax, the equilibrium real wage rate is ________ and the equilibrium hours of labour are ________.

• A) $20; 200 billion
• B) $30; 250 billion
• C) $30; 200 billion
• D) $35; 200 billion
• E) The equilibrium is not shown.

---

Definitions:

Foraker Act

Legislation passed in 1900 that established civil government in Puerto Rico, which had been newly acquired by the United States after the Spanish-American War.

Homestead Strike

A major industrial strike in 1892 at the Homestead Steel Works in Pennsylvania, representing a pivotal battle over labor rights in the U.S.

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population concerning particular issues or events, often measured through surveys and polls.

Largest Corporations

The biggest companies in the world in terms of revenue, market capitalization, or number of employees, often multinational and operating in multiple sectors.