The Following Figure Depicts the Labor Markets of Two Different

question 2

Multiple Choice

The following figure depicts the labor markets of two different firms.

-Refer to the figure above.Let the price of A's output be PA and the price of B's output be PB.If firm A hires 8 employees at a wage of $12 and firm B hires 2 employees at a wage of $18,what is the ratio PA/PB?

• A) 3
• B) 2

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Definitions:

Imports

Goods and services that are brought into a country from abroad for sale.

Decreases

A reduction or decline in value, amount, or level.

Constant Dollar

A term used to describe a dollar value that has been adjusted for inflation to reflect purchasing power at a specific point in time.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in real terms.