Use the Figure Below to Answer the Following Questions

question 41

Multiple Choice

Use the figure below to answer the following questions.

Figure 18.3.1
-Refer to Figure 18.3.1. This figure shows the value of marginal product of labour curve, the labour supply curve, and the marginal cost of labour curve. If this labour market is competitive, the wage rate is

• A)$3 an hour.
• B)$5 an hour.
• C)$6 an hour.
• D)$7 an hour.
• E)greater than $7 an hour.

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Definitions:

Federal Government

The national government of a federal country, which shares sovereignty with constituent states or provinces, responsible for governing national matters.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.

Excise Tax

A tax levied on specific goods or services, such as tobacco, gasoline, and alcohol, typically aimed at discouraging use or raising government revenue.

Indirect Tax

Tax on a thing rather than on a particular person; for example, sales tax.