The Figure Given Below Represents Equilibrium in the Labor Market

question 24

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-If a person is earning $80,000 per year as a dentist and could earn at most $45,000 per year doing something else, his transfer earnings are ____, whereas his economic rent is ____.

• A)$45,000, $35,000
• B)$80,000, $45,000
• C)$45,000, $80,000
• D)$80,000, $35,000
• E)$35,000, $45,000

Identify the relationship between educational attainment and income distribution.

Understand the impact of various forms of public assistance and non-cash benefits on poverty statistics.

Analyze the effects of demographic factors on poverty rates.

Understand how the government measures poverty and the implications of including non-cash benefits in poverty assessments.

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Definitions:

ROE

Return on Equity, which measures a corporation's financial productivity, is computed by dividing the net income by the total equity of shareholders.

D/E Ratio

The debt-to-equity ratio, a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Assets

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Debt/Equity Ratio

A gauge illustrating the financial reliance of a company on debt versus equity for asset support.