Which of the Following Statements Is True

question 109

Multiple Choice

Which of the following statements is true?

• A)A person who chooses to work at a job that pays $40,000 a year instead of a job that pays $80,000 a year is considered (by economists)to be irrational.
• B)The wage rate paid in one labor market can affect the supply of labor in another labor market.
• C)The wage rate paid in one labor market cannot possibly affect the wage rate paid in another labor market.
• D)The demand for every type of labor is always the same.

---

Definitions:

Supply Curve

A visual diagram illustrating the correlation between a product's price and the amount of it suppliers are prepared to produce.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Cost

The amount of money, time, and resources associated with producing or acquiring goods and services.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive, reflecting their benefit.