-Refer to Figure 32-5

question 48

Multiple Choice

-Refer to Figure 32-5.If the interest rate were initially at r₂ and an import quota were imposed,the interest rate would

• A)stay at r₂.
• B)decrease because supply would shift right.
• C)increase because supply would shift left.
• D)decrease because demand would shift left.

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Definitions:

Marginal Product

The extra output generated from adding a single unit of a specific input, with all other inputs remaining unchanged.

Market Wage

Market wage is the prevailing rate of pay for a specific job in the labor market, determined by the supply and demand for labor specific to that job.

Labor Curve

A graphical representation of the relationship between the quantity of labor demanded by employers and the wage rate.

VMPL

The Value of Marginal Product of Labor, which represents the additional revenue generated by employing one more unit of labor.