Figure 3.4 -In Figure 3.4, If the Wage Rate in Market a Rate

question 21

Multiple Choice

Figure 3.4

-In Figure 3.4, if the wage rate in market A and market B were set at $15, then

• A) there would be a shortage of workers in both markets.
• B) there would be a surplus of workers in both markets.
• C) there would be a shortage of workers in market A and a surplus of workers in market B.
• D) there would be a shortage of workers in market B and a surplus of workers in market A.
• E) the market as a whole would be in equilibrium.

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Definitions:

Income Distribution

The way in which total income is shared among the members of an economy.

Insolvent

A financial state where an individual or organization cannot meet its debt obligations as they come due.

Liabilities

Financial obligations or debts that a company owes to outside parties, which are recorded on the right-hand side of the balance sheet.

Creditors

Individuals, organizations, or entities that have lent money or extended credit to another party, and thus are owed repayment of the principal amount plus any applicable interest or charges.