Suppose That the Wage Is $20 Per Hour in a Two­sector

question 62

Multiple Choice

Suppose that the wage is $20 per hour in a two­sector
(manufacturing and agriculture) specific­factors model.
Currently, the prices of manufactured and agricultural
Outputs are $5 and $1, respectively; the marginal
Product of labor in the manufactured sector is 6 units
Per hour; and the marginal product of labor in the
Agricultural sector is 10 units per hour.What will happen
To the distribution of labor between the two sectors?

• A)Nothing will happen.The current allocation of labor between the two sectors is ideal.
• B)The manufacturing sector will demand more labor, and the agricultural sector will demand less labor at the
• Current wage.
• C)The agricultural sector will demand more labor, and the manufacturing sector will demand less labor at the
• Current wage.
• D)Both the agricultural and the manufacturing sector will demand more labor at the current wage.

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Definitions:

Zygotic Cells

The cells that result from the fertilization of an egg by a sperm, marking the beginning of a new organism's development.

Epigenetic Marks

Changes in DNA and histone proteins that impact how genes are expressed, without modifying the DNA sequence.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms.

Protein Molecules

Large biomolecules comprised of one or more long chains of amino acid residues which play critical roles in the body, including catalyzing metabolic reactions and DNA replication.