Exhibit 11.2 -Refer to Exhibit 11.2,which Shows the Labor Market.The Vertical Axis

question 151

Multiple Choice

Exhibit 11.2

-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The economic rent in equilibrium equals _____

• A)$40.
• B)$80.
• C)$160.
• D)$16.
• E)$8.

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Definitions:

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, so that each successive calculation includes interest on the interest.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing tool for employees and the self-employed in Canada.

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.

Compounded Monthly

Compounded Monthly means applying interest to both initial principal and the accumulated interest from previous periods on a monthly basis.