For the Economy of Lower Volta,the MPN Is Given by MPN

question 101

Multiple Choice

For the economy of Lower Volta,the MPN is given by MPN = 400 - 0.2N where N is aggregate employment.The aggregate quantity of labour supplied is 500 + 10(1 - t) w where t is the income tax rate and w is the real wage.Assume that the income tax rate is 50%.What is the before-tax real wage?

• A)150
• B)200
• C)250
• D)300

---

Definitions:

Perpetual Inventory System

An inventory management system that continuously updates the quantity and value of inventory on hand after each transaction.

Average Cost Formula

A mathematical calculation used to determine the average cost per unit of inventory by dividing the total cost of goods by the total number of units available.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.