The Following Figures Show the Demand and Supply of Labor

question 28

Multiple Choice

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
-In Figure 15.5,the equilibrium wage rate and the level of employment in Market A are _____ and _____ respectively.

• A)$8; 15 hours.
• B)$10; 10 hours.
• C)$10; 20 hours.
• D)$12; 25 hours.
• E)$6; 20 hours.

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Definitions:

Healthy Living

A lifestyle that includes balanced nutrition, regular physical activity, and avoidance of unhealthy behaviors such as smoking.

Sales Tax

A tax imposed by the government on the sale of goods and services.

Labor Market

The labor market is the marketplace where employers find workers and workers find jobs, dictated by supply and demand for labor.

Market Wage Rate

The prevailing rate of pay for a specific job in a given labor market.