Use the Figure Below to Answer the Following Questions

question 97

Multiple Choice

Use the figure below to answer the following questions.

Figure 19.3.5
-Refer to Figure 19.3.5. This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers. The equilibrium wage rate for low-skilled workers is

• A)$3 an hour.
• B)$7 an hour.
• C)$6 an hour.
• D)$5 an hour.
• E)$4 an hour.

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Definitions:

Allocation of Resources

The process of distributing scarce resources among various uses or competing demands to maximize output or efficiency in an economy.

Income Distribution

Refers to the way in which total income is shared among the members of a society.

Income Inequality

The uneven distribution of income within a population, leading to gaps between the wealthiest and the poorest individuals.

Income Distribution

The way in which total income is divided among the population or different groups within society, affecting economic inequality.