-The Table Above Gives the Labor Market for a Small

question 70

Multiple Choice

$$\begin{array} { c c c } \begin{array} { c } \text { Real wage rate Quantity of labor demanded } \\\text { (2005 dollars } \\\text { (millions of hours } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 7.15 & 90 & 25 \\7.65 & 70 & 32 \\8.00 & 60 & 60 \\8.50 & 45 & 70 \\9.00 & 20 & 85 \\\hline\end{array}$$
-The table above gives the labor market for a small foreign economy.Equilibrium in the labor market occurs at a real wage rate of

• A) $7.15 per hour.
• B) $7.65 per hour.
• C) $8.00 per hour.
• D) $8.50 per hour.
• E) $9.00 per hour.

---

Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.