The Figure Given Below Represents Equilibrium in the Labor Market

question 43

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 resource can be put to a single use and has no alternative uses then:

• A)economic rents are zero.
• B)transfer earnings are maximized.
• C)total earnings are zero.
• D)all earnings are economic rents.
• E)all earnings are transfer earnings.

---

Definitions:

Sensitive-insensitive

A descriptor indicating variability in an individual's response to emotional or sensory stimuli, ranging from highly responsive (sensitive) to barely affected (insensitive).

Self-schema

A cognitive representation that incorporates beliefs and feelings about oneself in specific domains.

Man-as-scientist

This term refers to the idea that individuals actively interpret and analyze their surroundings and experiences in a systematic and empirical manner, similar to the methods used by scientists.