Refer to the Graph of the Market for Low-Skilled Labor

question 131

Multiple Choice

Refer to the graph of the market for low-skilled labor. S_dis the supply of domestic resident workers, and Sₜ is the total supply of labor, including undocumented workers. What are the equilibrium wage rate and equilibrium employment if there is no illegal immigration?

• A)$14 and 142 million, respectively
• B)$13 and 135 million, respectively
• C)$14 and 120 million, respectively
• D)$17 and 135 million, respectively

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Definitions:

Interest Revenue

Income earned on investments, savings accounts, and other financial instruments that pay interest.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Stock Securities

Shares of ownership in a corporation or financial assets representing such shares, which can be bought and sold in the stock market.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including bonds, notes, and bills.